Keeping in mind that the Chinese analysts are in a position similar to that of economists in 2011 - 2013 Argentina:
A Cautionary Tale: "Argentina files criminal charges against consulting firm for publishing inflation data"
From China Banking News, December 22:
Chinese analysts say that a recent decline in one of China’s key benchmark lending rates is significant of further “marketisation” of interest rates, and will have a targeted impact on the cost of funds across the economy.
China’s loan prime rate (LPR) recently saw its first decline in the more than 19 months since the end of the Wuhan lockdown.
The loan prime rates issued by China’s National Interbank Funding Center (全国银行间同业拆借中心) on 20 December were 3.8% for the 1-year LPR and 4.65% for the 5-year LPR.
While the 5-year LPR remained unchanged compared to November, the 1-year LPR in December marked a decline of 5 basis points compared to the reading of 3.85% for the previous month.
Wang Qing (王青 ), chief macro-analyst with Golden Credit Rating, said that the fall in the 1-year LPR while the 5-year LPR remains steady is significant of further “marketisation” of China’s interest rate regime, with lending rates undergoing adjustment when appropriate in response to changes in market rates.
“This is also a concrete expression of increase in the transmission effectiveness of monetary policy,” said Wang.
Lv Zhengwei (鲁政委), chief economist with Industrial Bank, said that the decline in the benchmark rate was the result of recent monetary policy manoeuvrings, and would help to drive funding to China’s real economy....
