The People's Bank of China, the central bank, announced on Friday night that it will scrap the ceiling limits on all deposit interest rates, effective from Saturday. In late August, the central bank removed the ceiling on interest rates for more-than-one-year term deposits.
But a cap of 150 percent of benchmark rates remains in effect for demand deposits and less-than-one-year or one-year term deposits. The PBOC said in a statement on Friday that after the removal of the ceiling, its interest rate adjustment will rely more on market-based monetary policy tools.
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