China's central bank now says it's planning more reforms of interest rates in this country.
The People's Bank of China says interest rates are going to be decided by market competition.
On top of re-tooling the deposit and lending rates, the central bank is also considering the gradual marketization of financial derivatives.
The central bank is warning both bank clients and commercial banks to be ready for interest rate changes.
The PBOC's current one-year lending rate stands at 6.56 percent.
The one-year deposit rate is 3.5 percent, which currently sits well under the rate of inflation here in China, meaning that bank deposits sit in the red at the moment. |
