Jul 06, 2022 08:57 PM

Caixin Explains: China Takes Another Step to Unshackle Interest Rates


China’s central bank is testing the waters for a new mechanism that will give banks more freedom to set their own deposit rates, the latest step toward realizing its long-standing goal of liberalizing interest rates.

Lenders are being encouraged to adjust deposit rates using a deposit interest rate marketization mechanism, which was rolled out in April by the Self-Discipline Mechanism for Market Interest Rate Pricing, a banking industry body overseen by the People’s Bank of China (PBOC). The central bank disclosed the new mechanism in its first-quarter monetary policy implementation report released on May 9.

You've accessed an article available only to subscribers
Share this article
Open WeChat and scan the QR code
Get our CX Daily, weekly Must-Read and China Green Bulletin newsletters delivered free to your inbox, bringing you China's top headlines.

We ‘ve added you to our subscriber list.

Manage subscription