Market-based interest rate is a profound change to China's financial industry and it has far-reaching impacts on the overall national economic development.

ANBOUND’s scholars are of the view that the central bank has to accelerate the pace in establishing policy-based benchmark interest rate.

A mature market-based interest rate requires the central bank to adjust its policy-based benchmark interest rate to influence the short-term interest rate in the monetary market and the borrowing cost of the financial institution with the view to influence the long-term trend of the interest rate and to realize the goals of the monetary policy.

China should establish its policy-based benchmark rate as soon as possible as this will have significant impacts in terms of prevention of financial risks and the progress of the market-based interest rate.