Limits on interest rates to fade out

时间：2006-12-11 03:19:06

（单词翻译:单击）

BEIJING, Dec. 11 - The government will gradually remove the ceiling on deposit rates and the floor on lending rates as the health of its banking1 system improves, deputy central bank governor Wu Xiaoling said Saturday.

 

Wu gave no timetable for liberalization, but her comments will reinforce speculation2 that interest rate reform will be a priority for China’s leaders when they hold a five-yearly conference in coming weeks to chart financial strategy.

 

Speaking at a forum3 on rural finance and development, Wu said the central bank had to maintain deposit and lending limits for now because banks lacked self-discipline.

 

Without a cap on deposit rates, currently 2.52 percent for one-year money, banks would lure4 savers with high rates even if they could not afford them.

 

Similarly, without a floor on lending rates, banks would slash5 borrowing costs to win business and end up in trouble.

 

“With the mechanism6 of financial institutions improving, the floor and ceiling will gradually fade out,” Wu said.

 

The People’s Bank of China (PBOC), the central bank, removed the ceiling on lending rates in October 2004 but banks must still charge at least 90 percent of benchmark rates set by the PBOC. For the one-year tenor7, this rate is 6.12 percent.

 
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1 banking aySz20     
n.银行业，银行学，金融业
参考例句：
  • John is launching his son on a career in banking.约翰打算让儿子在银行界谋一个新职位。
  • He possesses an extensive knowledge of banking.他具有广博的银行业务知识。
2 speculation 9vGwe     
n.思索，沉思；猜测；投机
参考例句：
  • Her mind is occupied with speculation.她的头脑忙于思考。
  • There is widespread speculation that he is going to resign.人们普遍推测他要辞职。
3 forum cilx0     
n.论坛，讨论会
参考例句：
  • They're holding a forum on new ways of teaching history.他们正在举行历史教学讨论会。
  • The organisation would provide a forum where problems could be discussed.这个组织将提供一个可以讨论问题的平台。
4 lure l8Gz2     
n.吸引人的东西，诱惑物；vt.引诱，吸引
参考例句：
  • Life in big cities is a lure for many country boys.大城市的生活吸引着许多乡下小伙子。
  • He couldn't resist the lure of money.他不能抵制金钱的诱惑。
5 slash Hrsyq     
vi.大幅度削减；vt.猛砍，尖锐抨击，大幅减少；n.猛砍，斜线，长切口，衣衩
参考例句：
  • The shop plans to slash fur prices after Spring Festival.该店计划在春节之后把皮货降价。
  • Don't slash your horse in that cruel way.不要那样残忍地鞭打你的马。
6 mechanism zCWxr     
n.机械装置；机构，结构
参考例句：
  • The bones and muscles are parts of the mechanism of the body.骨骼和肌肉是人体的组成部件。
  • The mechanism of the machine is very complicated.这台机器的结构是非常复杂的。
7 tenor LIxza     
n.男高音（歌手），次中音（乐器），要旨，大意
参考例句：
  • The tenor of his speech was that war would come.他讲话的大意是战争将要发生。
  • The four parts in singing are soprano,alto,tenor and bass.唱歌的四个声部是女高音、女低音、男高音和男低音。

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