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The implications for China of deposit rate liberalisation

When the PBOC cut benchmark interest rates late last month, it also removed the regulatory ceiling on banks’ deposit rates. This final step in liberalising interest rates came sooner than many had anticipated. We take it as a sign that policymakers remain committed to financial reform.

In this China Watch we take a closer look at what rate liberalisation means for banks, depositors, credit allocation and for the PBOC’s management of monetary policy.

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