China's central bank switches to one main interest rate in major overhaul decision - reports

To behave more like other central banks

The People’s Bank of China (PBOC) is planning to adopt one interest rate to manage credit demand in the country.

According to comments sent by the Chinese central bank to the Financial Times, the PBOC said it would prioritise "the role of interest rate adjustments" and leave behind "quantitative objectives" for loan growth in what would count as a significant change in Chinese monetary policy. The PBOC added that it would likely cut interest rates from the current 1.5% level "at an appropriate time" this year, aligning Beijing's monetary policy decisions with those of the US Federal Reserve and the European Central Bank. Trade wars emerge as biggest risk facing investment markets in 2025 Curr...