China is to gradually liberalize the country's thousands of credit cooperatives, but the central bank warned that moving too quickly could weaken attempts to keep the economy from overheating. In a report on interest rate reform, the People's Bank of China said that rural and urban credit cooperatives were still ill-equipped to set lending rates on their own. The PBOC said it would gradually let market forces play a bigger role in allocating capital, but gave no timetable.
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