The People’s Bank of China has essentially gained control of all lending rates in the world’s second largest economy and, potentially, could engineer a modest rate cut. Photo: Reuters

China’s central bank now has ‘bigger say’ over lending rates, but analysts question level of impact

  • The People’s Bank of China now requires banks to benchmark their loan rates against the medium-term lending facility instead of the official benchmark
  • The change is part of a long-term modernisation process within the world’s second largest economy to have a market-oriented central banking mechanism
Topic |   China economy

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The People’s Bank of China has essentially gained control of all lending rates in the world’s second largest economy and, potentially, could engineer a modest rate cut. Photo: Reuters
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