19 July 2019

PBoC backs smaller bank interest rate spread, Xinhua says

The People’s Bank of China fully endorses public sentiment that banks should have a narrower interest rate spread, Xinhua reported Saturday, citing governor Zhou Xiaochuan {周小川}. In a panel discussion Friday, Zhou said interest rates tend to move up in the initial stage of rate marketization before a new balance is reached, forcing them lower. And aggregate money supply is not tight as it grows clearly faster than GDP, the report quoted Zhou as saying.

– Contact HKEJ at [email protected]



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