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
