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Why China's Rate Reform Is Important for Its Economy

Aug.19 -- China took a major step toward reforming its system of interest rates, in a move aimed at pushing down the cost of borrowing by households and companies as the economy slows. From August 20, new loans must be priced “mainly” with reference to a revamped benchmark that tracks the price of credit to banks’ best customers, the so-called Loan Prime Rate. In turn, that rate is linked to the price the People’s Bank of China charges lenders for cash over one year. Bloomberg's Selina Wang has the details.
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