China's central bank likely to cut rates this year

CHINA'S CENTRAL BANK said it is likely to cut interest rates from the current level of 1.5% "at an appropriate time" in 2025, the Financial Times reported on Friday citing comments the bank made to the newspaper.

- REUTERS

The remarks by the People's Bank of China align with policymakers' commitment made last year towards creating a more market-driven interest rate curve. Analysts anticipate it will make further changes this year to ensure credit demand is more responsive to monetary policy moves.

The PBOC said that it would prioritise "the role of interest rate adjustments" and move away from "quantitative objectives" for loan growth, the FT reported, as it embarks on a programme of interest rate reform that government advisors have called "an arduous task".

"The PBOC will pay more attention to the role of interest rate control, and improve the formation and transmission of market-orientated interest rates," the bank said.