PBoC removes lending rate floor
The People's Bank of China today announced it will from tomorrow no longer put a floor under bank lending rates in the country – allowing banks to compete for borrowers by pricing loans at less than 70% of the PBoC's benchmark rate.
The announcement also says the ceiling on lending rates offered by rural credit co-operatives will also be removed. It previously stood at 2.3 times the benchmark rate. However, the PBoC did not remove the deposit rate cap, currently 10% above the benchmark rate
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