Central Bank chief says interest rates to be eased
In another reform of its financial sector, China will fully liberalize its interest rate within one or two years , according to the head of the Central Bank..
“We will let the market play its due role in interest rate liberalization. That’s for sure,” Zhou Xiaochuan said. “Deposit rate is set to ease within one or two years. It’s part of our plan.”
He said that interest rates will possibly go up, but will eventually level in the longer term due to market forces and competition.
Financial reforms, including yuan globalization, banking regulations, private equity, debt risks control, will be launched with zeal, although some steps may take three or five years, Zhou said.
“Reforms in other fields, including rural reforms, resource distribution and economic opening-up, will also involve financial reforms,” Zhou added. “We will get them done step by step.”