Friday, September 21, 2012

China unlikely to ease controls on interest rates soon





Beijing took a small step towards liberalising its interest-rate regime in June, but the central bank is quietly signalling that further concrete steps will not be taken any time soon.


According to people familiar with the thinking at the People's Bank of China, certain structural and institutional reforms must be put in place before lending and deposit interest rates, currently strictly set by the central bank, can be relaxed. And that could be several years away.


Among the pre-conditions is the creation of a national deposit insurance system to protect depositors.









via Business feed http://www.scmp.com/business/economy/article/1041828/china-unlikely-ease-controls-interest-rates-soon

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