Government and Policy
Low rates may hinder financing: PBOC governor
(Xinhua)
Updated: 2009-11-20 11:15
BEIJING: Low interest rates would discourage financial institutions from providing adequate financing to the real economy, Zhou Xiaochuan, governor of the People's Bank of China (PBOC) said Friday.
The one-year benchmark deposit rate stands at 2.25 percent among Chinese banks. The rate has been unchanged since December last year when China's central bank cut loan and deposit rates by 0.27 percentage points.
In efforts to stimulate the economy following the global financial crisis, the central bank cut the interest rates five times in four months from September to December last year.
