China’s central bank said on Monday it would make deposit-taking institutions (DRs) interbank repo rates a key benchmark for monetary policy adjustment and pricing in financial markets.

Improving China’s benchmark interest rate system would help strengthen financial markets, deepen market-based interest rate reforms, and improve monetary policy management, People’s Bank said. of China (PBOC) in a statement posted on its website, adding that it had participated in an international benchmark. interest rate reforms and promote the application of new benchmark interest rates with a focus on deposit-taking institutions.

The PBOC said that the priority of developing China’s interbank benchmark interest rate system is to promote the large-scale application of various benchmark interest rates.

Efforts will be made to innovate and expand the application of R&D in financial products to make R&D a key benchmark for the management of monetary policy and pricing of China’s financial markets, he said. he adds.

The PBOC also said that China has a major advantage in cultivating benchmark interest rates based on actual transactions, and significant progress has been made in building the rate system. China’s benchmark interest and China’s benchmark interest rates based on actual transactions were in effect. for a long time, and that data on large-scale market transactions was available and transparent.

Chinese money, bond and loan markets have cultivated their own representative interest rate indicators, according to the PBOC, adding that R&D, government bond yields and the prime lending rate (LPR) have played an important role as a benchmark interest rate in the corresponding financial markets. Marlet.

(Cover: The headquarters of the central bank of China in Beijing, capital of China. / CFP)

Source (s): Reuters


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