Editorial: How China Should Push Forward Interest Rate Liberalization

Successful market-based interest rate reform cannot be achieved by a single central bank department. It requires cooperation from the whole of society. Photo: VCG

What is the next step for China’s interest rate liberalization reforms? The Monetary Policy Department of the People’s Bank of China (PBOC) published an article recently, summarizing the central bank’s progress in implementing interest rate liberalization over the past five years and disclosing information about the way ahead. After years of effort, the central bank has achieved remarkable results in interest rate liberalization. However, this reform is not yet complete. While it should be fast-paced, as in the past days, it is experiencing a slowdown. Reform becomes harder to push through as the finish line approaches. This is because factors from outside the financial sector also play a major part in the future of this reform. Thus, furthering the reform to all aspects of society is something that must be done.