New benchmark rate system is necessary

Finance | Yi Xianrong

The liberalization of deposit rates promised by Zhou Xiaochuan, governor of the People's Bank of China, at a recent news briefing at the annual session of the National People's Congress, will mark the country's final step in allowing banks to set their own interest rates.

"Deposit rate liberalization is on our agenda," Zhou said. "Personally I think it is very likely to be realized within one to two years."