A senior government research official said China is likely to achieve deposit rate liberalization in about three years, Shanghai Daily reported over the weekend. In a commentary published by a magazine called Yingda Finance, Chen Daofu, director of the Research Institute of Finance at the State Council’s Development Research Center, suggested that the deposit rate cap be raised from 10 percent to 20-30 percent in the near future. The ceiling on fixed deposit rate can be lifted to 50 percent over three years, and the complete liberalization of deposit rates should be achieved between 2015 and 2016, Chen was quoted as saying. The liberalization of medium and long-term deposit rates should be given priority over short-term rates, he added.
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