China unveils reform to help firms borrow more cheaply

BEIJING (Reuters) - China's central bank said on Saturday it will improve the mechanism used to establish the loan prime rate (LPR) in a move to further lower real interest rates for loans in a market-based way.China's LPR quotations will be based on rates of open market operations, and the national interbank funding centre will be authorised to publish the rate from Aug. 20, the People’s Bank of China (PBOC) said in a statement on its website. It added the rate will be published every month..