FXStreet (Barcelona) – The Brown Brothers Harriman team note that the PBOC has taken another step ahead towards liberalizing interest rates in China.
Key Quotes
“The PBOC issued guidelines for certificates of deposits (CDs). The instruments will be classified as a form of deposit, hence covered by the deposit insurance system. The next step is to soften the upper limit for deposit rate. The move is part of a package of policy measures which, amongst other things, are helping to deflate the shadow banking system by offering an alternative vehicle for funds to go into.”
(Market News Provided by FXstreet)