China is considering scrapping the official benchmark lending rate in an effort to liberalize interest rates, said Yi Gang, the governor of the People’s Bank of China.

The lending rate has actually been liberalized, but there is still room to explore further reform such as stopping the release of benchmark lending rates, Yi said earlier at a forum in Beijing, according to a Securities Journal report.

He said the present benchmark lending and deposit rates are at moderate level, which balances the policy purposes of protecting the interest of the masses and keeping competitiveness within the banking system.

China is gearing up to make interest rates more market-oriented. Analyst were quoted as saying in the report that the financing difficulties for private-owned companies are partly from a structural pressure of the monetary policy.

The central bank may use the Loan Prime Rate to replace the benchmark lending rate, the analyst said.

In addition, Yi also expressed confidence in the stability of the yuan, despite recent downward pressure on yuan against the US dollar.