Experts see need to reduce loan interest rates

The need for China to tamp down interest rate levels may have become more urgent as the country's economic rally is grappling with a sluggish recovery in demand and the pressure of debt costs on corporate earnings, political advisers and experts said.

"It is worth every possible effort to adjust loan interest rates," said Gong Liutang, a member of the 14th National Committee of the Chinese People's Political Consultative Conference.

China's slowing inflation has led to rising real interest rates, which means that enterprises now face higher real costs to service their debts, restricting their capacity and willingness to invest, Gong said.