A Chinese flag flies in front of the People’s Bank of China headquarters in Beijing. Photo: Bloomberg

Why China’s central bank is liberalising its interest-rate system

  • As part of liberalising its interest-rate system from August, the PBOC replaced the benchmark lending rate with two new reference rates for bank loans
  • The PBOC wants to influence the economy and financial markets via the price of its short-term loans in the open market – an approach similar to other central banks
Topic |   Global interest rates

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A Chinese flag flies in front of the People’s Bank of China headquarters in Beijing. Photo: Bloomberg
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