PBOC Adviser Ma: China’s central bank to lower funding costs, prevent debt and inflation risks

In an interview with the official Financial News, Ma Jun, an external adviser to the People’s Bank of China’s (PBOC) monetary policy committee (MPC), said that will continue to lower financing costs for the economy.

The PBOC, however, must prevent leverage ratios from rising and should also consider inflation pressure, he added.

Ma said that it would take some time for a recent cut in banks’ reserve requirement ratios to affect the loan prime rate (LPR), the benchmark lending rate.