People’s Bank of China (PBoC) governor Zhou Xiaochuan said Friday that China will make "obvious progress" in interest-rate liberalization under the upcoming 12th Five-Year Plan, state media reported. Zhou said pricing is a key part of the liberalization of interest rates, and that lenders with the best risk-assessment capabilities should be given more freedom to set rates according to market conditions. China’s consumer price inflation rose to a 28-month high in November, although some analysts believe the true figure is higher. The government has pledged to curb lending and other factors that are putting upward pressure on prices. The central bank raised reserve requirements for lenders three times in the last five weeks but declined to add to October’s interest-rate rise, the country’s first in three years.
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