Several large state banks to cut rates on some deposits, including dollar deposits – report
MACRO POLICY & REGULATION
Several large state banks to cut rates on some deposits, including dollar deposits – report
MACRO POLICY & REGULATION

Several large state banks to cut rates on some deposits, including dollar deposits – report

 

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Several large state-owned Chinese banks will reduce interest rates on some deposits, including yuan and US dollar deposit, reported the state-backed Securities Times, citing multiple sources. 

The interest rate on some current deposits will be reduced by 5 basis points and the interest rate on some term deposits will be lowered by 10 basis points, the report said.

Earlier on Tuesday, Bloomberg News reported that Chinese authorities request large banks, including Bank of China, ICBC and Bank of Communications to cut deposit rates again to boost economy.

Reuters reported that, in an attempt to bolster the yuan, a self-regulatory body overseen by the People’s Bank of China, the central bank, has told major state-owned banks to lower dollar deposit interest rates.

This could encourage Chinese firms, especially exporters, to settle foreign exchange receipts in yuan , which has weakened to six-month lows against the dollar.