People's Bank aims to curb speculation by savers

Today’s interest rate announcement again showed the People’s Bank applying the biggest rate increases to long-term deposits, in an attempt to encourage savers to keep their money in banks rather than seek speculative returns elsewhere. By contrast, long-term lending rates are rising by less than short-term rates, which may be a sign that policymakers are worried about the financial viability of some of the stimulus-linked investment projects launched over the past two years.