China39;s central banks says likely to cut interest rates in 2025
Shift from quantitative objectives to cost of credit targeting
Last cut main 7day reverse repo rate to 1.5 from 1.7 in Sept
China 10and 30year treasury yields both hit record lows

BEIJING, Jan 3 Reuters China39;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.

The remarks by the People39;s Bank of China align with policymakers39; commitment made last year towards creating a more marketdriven 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.

Aligning with the requirements of highquality development, these quantitative targets have been phased out in recent years, the bank said.

The PBOC will pay more attention to the role of interest rate control, and improve the formation and transmission of marketorientated interest rates, it added.

China39;s 10year and 30year treasury yields both hit record lows on Friday on expectations of fresh monetary easing.

The economy39;s main rate is its sevenday…