BEIJING, Sept 9 (Reuters) - Zero interest rates could discourage banks from extending loans, China's central bank governor Zhou Xiaochuan said in remarks reported on Thursday.
Zhou, head of People's Bank of China (PBOC), was quoted by local financial news portal Caing.com as saying that a central bank should keep a certain interest rate margin to encourage lending.
He was referring to central banks in general and not to China specifically.
Zhou was speaking at a forum in Beijing sponsored by Oxford University, according to Caing. (Reporting by Zhou Xin and Alan Wheatley; Editing by Ken Wills)