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    China | Looking for new monetary policy tools in the liberalized-interest-rate environment

    Published on Thursday, February 25, 2016 | Updated on Sunday, May 13, 2018

    China | Looking for new monetary policy tools in the liberalized-interest-rate environment

    Summary

    China wrapped up its decades-long process of interest rate liberalization last October after the PBoC announced the lift-off of deposit rate caps. However, it brings about new challenges to the monetary policy conduct. Corridor system is likely to be adopted in the post-period of interest rate liberalization. And more monetary easing will be deployed to spur growth.

    Geographies

    Authors

    Jinyue Dong BBVA Research - Principal Economist
    Le Xia BBVA Research - Chief Economist

    Documents and files

    Report (PDF)

    20160225_ChinaWatch_Monetary_policy_interest rate liberalization_edited

    English - February 25, 2016

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