Business & Finance
PBOC Rate Shift Plan Would Lower Borrowing Costs: Analysts
Key Points
PBOC Rate Shift Plan Would Lower Borrowing Costs, Says Analysts The People’s Bank of China’s consideration of shifting its policy rate benchmark to the overnight reverse-repo rate would effectively lower borrowing costs, supporting bond investments, according to analysts. This transition may spur demand for short-term funding and increase leverage risks, requiring the central bank to strengthen safeguards, they added.
PBOC Rate Shift Plan Would Lower Borrowing Costs, Says Analysts
The People’s Bank of China’s consideration of shifting its policy rate benchmark to the overnight reverse-repo rate would effectively lower borrowing costs, supporting bond investments, according to analysts.
This transition may spur demand for short-term funding and increase leverage risks, requiring the central bank to strengthen safeguards, they added.