Starting Thursday, six of China's largest commercial banks have announced a reduction in their RMB deposit rates. This marks the first rate cut by these major institutions this year and the fifth since September 2022.
The banks implementing these changes include the Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank of China. These adjustments reflect a strategic move in the current economic climate.
Specifically, the annual interest rate for demand deposits has been lowered by 5 basis points. Fixed deposits, encompassing full-term deposits for three months, six months, and one year, have seen a reduction of 10 basis points. Furthermore, longer-term deposits, such as two-year, three-year, and five-year terms, have been decreased by 20 basis points.
These rate cuts may influence consumer saving behaviors and business investment strategies, signaling potential shifts in China's economic policies and market conditions.
Reference(s):
cgtn.com
