Chinese state banks have reportedly cut deposit rates and short-term lending rates amid the ongoing economic woes. This move is mainly aimed at stimulating consumption, and China’s financial bodies would implement a lower interest-rate approach in the future, financial analysts suggest.
Wind, China’s financial information service provider, combed through the interest rates of state banks and concluded that the demand deposit rate generally cuts to 0.2 percent, the one-year deposit rate has fallen to less than 2 percent, while the interest rate on time deposits with a maturity of between two to five years was reduced to 2.05–2.8 percent, according to a report of Chinese financial media Ifeng.com on Aug. 25.
