credit rating agency Moody’s Investors Service, said the People’s Bank to give greater flexibility in the commercial banks to set deposit and lending rates is the first step towards reform of the Mainland’s financial system, have a positive impact on the sovereign credit .

the People’s Bank cut interest rates last Thursday, while the deposit rate floating range of financial institutions limit was adjusted to 1.1 times the benchmark interest rate, loan interest rate floating range of the lower limit was adjusted to 0.8 times the benchmark interest rate.

Moody’s weekly credit outlook report pointed out that these adjustments to enable the depositor to obtain the actual positive return for Chinese banks to maintain a stable deposit base is essential. Although the overall structure of interest rates remain under the administrative control measures are still an important first step of China’s financial system reform.

Moody’s to give a rating Aa3 by rating outlook is positive.