BEIJING / SHANGHAI (Reuters) – China’s central bank on Monday said 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 in a statement posted on its website.
He added that he had participated in international benchmark interest rate reforms and would encourage 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 said that China has the advantage of having benchmark interest rates based on actual transactions, and that significant progress has been made in building the benchmark interest rate system of the country. China.
The central bank said China’s benchmark interest rates based on actual transactions have been in place for a long time and data on large-scale market transactions is available and transparent.
Chinese money, bond and loan markets have cultivated their own representative interest rate indicators, the PBOC said, adding that R&D, government bond yields and loan prime rates (LPR ) played an important role as a benchmark interest rate in the corresponding financial market.
Reporting by Lusha Zhang and Kevin Yao in Beijing; additional reporting by Luoyan Liu in Shanghai; Editing by Toby Chopra and Andrew Heavens