Bank of China Ltd President Li Lihui suggested that China cancel floating ranges for loan interests, in a bid to allow greater market say in setting interest rates, Shanghai Securities Journal reported on Monday.

Li said interest and exchange rates both reflect the currency price, and market input in the interest and exchange rates could help form a balanced price for the currency.

China's central bank currently sets benchmark interest rates and floating ranges for deposits and loans of domestic financial institutions.

The central bank allowed lenders to widen the discount on the benchmark lending rate to 20 percent in June 2012, and broadened the limit to 30 percent in July. Meanwhile, banks are offering savers a premium of as much as 10 percent over the benchmark deposit rate.