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 reform the financial sector, the Central Bank governor Zhou Xiaochuan said on Tuesday at a news briefing during the two sessions.

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

He added that interest rates will possibly go up, but will eventually level in the longer term due to market forces and competition.

Financial reforms, including yuan globalization, banking regulations, private equity, debt risks control, will be launched with zeal, although some steps may take three or five years, Zhou said.

The country has stepped up its efforts to push for economic reforms in recent years, rolling out a slew of measures and regulations in the process.

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

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