China's big banks cut deposit rates, signaling monetary easing ahead
CNBC Key Points
- China's six state-owned commercial banks cut deposit rates Thursday, according to CNBC checks.
- Those cuts help improve banks' profitability, while setting the stage for the People's Bank of China to reduce other interest rates, Nomura analysts said.
- China's economic recovery from the pandemic has slowed in recent months.
Bank of China is one of the major state-owned banks in China. Pictured here is a branch in Shanghai on March 27, 2023.
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BEIJING China's largest banks cut interest rates for savers on Thursday in a bid to boost growth in an economy where consumption has been slow to recover.
The country's six state-owned commercial banks' websites all showed updated yuan-denominated demand deposit interest rates of 0.2%, down from 0.25% last year, according to CNBC checks. Demand deposits allow withdrawals at any time.
The banks cut rates for other deposit products, including reducing the interest rate for five-year time deposits to 2.5% from 2.65%, according to their websites. The state-run Securities Times reported the deposit rate cuts in the Thursday edition of the newspaper.
