China is expected to loosen its.........>

CHINA PRESS: China is expected to loosen its invisible restrictions on

commercial banks' deposit interest rate ceiling, China Securities Journal

reported Monday. 

  - PBOC Governor Yi Gang said last week that the PBOC will gradually

"coordinate the benchmark interest rate and money market rate," thus making

interest rates more market-based. This will increase the influence of short-term

interest rates on deposit, loan interest rates and bond yield rate, which is

necessary, noted experts cited by the report; 

  - This measure also aims to reduce banks' liquidity pressure, as the new rules

on wealth management products will prohibit banks from having on-budget WMP

businesses; 

  - As the growth rate of resident deposit turned negative at the end of last

year, letting go of the ceiling of deposit interest rates would attract more

deposits, and ultimately ease banks' financing pressure.