People’s Bank of China Governor Zhou Xiaochuan said on Thursday that removal of a cap on what banks can pay depositors over the official benchmark rate was “very close,” Bloomberg reported. “If there is a chance this year, the deposit-rate ceiling will be lifted, and the last step that people have been expecting will be made,” Zhou said. “The probability is very high,” he said. The move could end an era of banks funneling cheap loans to state enterprises and infrastructure investments and channel more wealth to the masses, helping boost consumption.
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