We should let the market determine whether an enterprise can borrow at a lower rate. Second, the interest rate on deposits shall be allowed to move downward against the benchmark rate. The practice of allowing a few rural credit cooperatives to set the deposit rate above the benchmark rate has its special background, and has raised some controversies.
As of now, there are no apparent signs of overheating in spending or the gestation of a credit or asset boom as a result of these flows, either of which could endanger control over inflation or the stability of the financial system. However, a possible reversal of these flows may translate into volatility and asset price declines, including exchange rate depreciation.