Regulators will permit banks to set lower interest rates on loans as soon as this year, a survey showed, as price swings ebb in China's bond market.

Lenders, now only allowed to set borrowing costs 10 percent lower than the central bank's 6.56 percent benchmark, will be given a wider range by the end of this year, according to six of 10 economists surveyed over the past two weeks by Bloomberg News.

China Daily - Agencies