The interest rates that will be determined by the market include commercial rates but not the interest rates used by the central bank to conduct financial management. In recent years, China’s market-based interest rate reform has advanced steadily, with significant progress achieved in the deregulation of money market interest rate.
First, market has been playing an increasingly important role in determining the types of interest rate in the money market, which now include inter-bank lending rate, bond repurchase rate, bill market discount rate, interest rate in the primary and secondary market of government bond and policy financial bond. Second, management of interest rate on loans and deposits has been streamlined.