China Removes Floor on Lending Rates as Economy Slows

China eliminated the lower limit on lending rates offered by the nation’s financial institutions as economic growth slows and Premier Li Keqiang expands the role of markets in the world’s second-biggest economy.

The change, effective yesterday, removes a floor set at 30 percent below the current 6 percent benchmark, giving banks freedom to set their own lending rates. The People’s Bank of China made the announcement on July 19.