- As of 20 July
- PBOC to cancel rate cap for rural credit coopreratives
- Allow banks to set lending rates based on commercial principles
- To continue differentiated lending policies for housing sector
- Rate reform will help lower financial costs for companies, will help promote economic restructuring
The move had been widely expected. The floor was put on interest rates to protect the profits of state banks. The limits were set for a minimum on interest rates and a maximum in deposit rates guaranteeing a margin of about 90 bps.
