Ryan posted this on Friday:

China removes floor on lending rate

Aussie bolts after Chinese interest rate policy change

Here’s more details from the South China Morning Post: Chinese banks given freedom to set lending rates

And from two (non-gated) Wall Street Journal articles:

Free to Lend: What China’s Interest Rate Move Means

  • allows banks to lend at whatever rate they like
  • a strong indicator that China is serious about shaking up a financial system that is in need of reform.

Economists React: Lending Rate Liberalization

  • The immediate economic impact of today’s interest rate liberalization will be small
  • the more crucial part of interest rate liberalization–raising (or removing) the deposit rate ceiling (currently 1.1x benchmark rate), as we have been highlighting–was not implemented