China’s PBoC Governor Yi Gang indicated the central bank will step up credit support to the economy. Yi said during a meeting with commercial banks that capital replenishment will be promoted to increase bank’s lending ability. Additionally, countercyclical adjustments will be stepped up to ensure growth in money supply and social financing.

Markets are expecting PBoC to lower the Loan Prime Rate (LPR) tomorrow, for the third time since it’s introduced the benchmark in August. Yi urged lenders to reference the LPR to set their own lending rates.

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