China signals ‘deep-water’ reform

China Daily

In freeing up lending rates, China has sent a strong signal that it is feeling its way in the "deep water" of reform, moving toward a more open, market-oriented economy. On Friday, China's central bank announced the sooner-than-expected removal of controls on bank lending rates, effective on Saturday. It canceled the floor limit for lending interest rates to allow financial institutions to compete for borrowers. "In general, we believe the macro and micro conditions are ready for further reforms," said a central bank official who spokes to Xinhua on condition of anonymity.

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