China to open interest rate in one or two years

China is set to fully liberalize its interest rate within one or two years, in a bid to further push forward its ongoing financial reform, the Central Bank governor Zhou Xiaochuan said on Tuesday at a news briefing during the two sessions. [Photo/Xinhua]

China is set to fully liberalize its interest rate within one or two years, in a bid to further push forward its ongoing financial reform, the Central Bank governor Zhou Xiaochuan said on Tuesday at a news briefing during the two sessions.  [Special coverage]

"We will let the market play its due role in interest rate liberalization. That's for sure," Zhou said. "Deposit rate is set to be open within one or two years. It's within our plan."

He added that interest rate will possibly go up, but will eventually subject to the market force in a longer term amid competition.

Financial reforms, including yuan globalization, banking regulations, private equity, debt risks control, will be at full swing with varied timelines, and some may take longer time, say three or five years, Zhou said.

The country has been stepping up efforts to drive forward its all-around economic reforms during its structural transformation in recent years, rolling out a slew of measures and regulations during the process.

"Reforms in other field, including rural reforms, resources distribution and economic opening-up, will also involve financial reforms," Zhou added. "We will get them done step by step."