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MOSCOW, July 19 (Reuters) - China's relaxing of controls on bank lending rates is a step in the right direction, Japanese Finance Minister Taro Aso said on Friday.
The move gives commercial banks the freedom to compete for borrowers, which the People's Bank of China said will help lower financial costs for companies and marks a long-awaited step along the road of market-oriented reform.
Group of 20 nations are pressing China to encourage domestic demand-driven growth and allow greater exchange-rate flexibility as part of wider efforts to rebalance the global economy
"(China) is taking a step in the right direction," Aso told reporters after a working dinner of G20 finance ministers and central bankers in Moscow.
Aso told his fellow policymakers that Tokyo was determined to implement debt consolidation measures over time and that its massive fiscal and monetary stimulus, aimed to galvanise growth and end years of deflation, would have benefits for the entire world economy.
"I told G20 that we will firmly implement growth strategy and we are determined to steadily tackle fiscal consolidation including our international pledge made at G20 of halving the primary budget deficit by fiscal year 2015," Aso said.