Interest rate ceiling may be lifted

The People's Bank of China (PBOC), China's central bank, plans to remove the ceiling on interest rates for loans, according to state media reports. A PBOC official in charge of monetary policy told China Securities Journal that abolishing the ceiling on loan interest rates would work to curb investment in overheated sectors with excessive loan growth. The official also implied that the loan rate could increase for domestic firms, particularly those deemed high-risk, adding that the bank will still maintain a floor on lending rates.