In order to increase deposit interest rates, we have to revitalize the economy and overcome deflation. Another concern is that the Bank’s negative interest rate policy will have a negative impact on financial institutions’ business, making them more reluctant to lend or leading them to demand higher lending rates.
*** While the presumption that a revaluation of the RMB will notably increase jobs in the United States by constraining imports or expanding exports is without statistical or analytical support, it is nonetheless the case that a more flexible RMB would be helpful to China’s economic stability and, hence, to world and U.S. economic growth.