19 August 2019

PBoC chief sees liberalized rates two years off, paper says

Central bank governor Zhou Xiaochuan {周小川} said any new breed of financial services, including online money market funds such as Alibaba Group’s Yu’E Bao, will help promote the marketization of interest rates in China, the Securities Times reported Tuesday. Zhou, the head of the People’s Bank of China (PBoC), also said rates could be fully liberalized in one to two years, with new opportunities emerging during this process. He said there could be chances for people to chase higher returns but the market would balance itself out over the longer run. Zhou said it would take longer to internationalize the yuan, with the PBoC needing to lay the foundations through its policies, legal framework and other operational issues, the report said.

– Contact HKEJ at [email protected]



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