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Direction for Interest Rate Liberalization in China

22/08/2012
Author : China's Economy and Policy
 
The main goal of interest rate liberalization is to establish a mechanism whereby deposit and loan interest rates in financial institutions are determined by market supply and demand, to regulate and guide market interest rates through the use of monetary policies, and to make the market play a leading role in allocating financial resources. At present China is accelerating the process of interest rate liberalization, which will be discussed in this paper.

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