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China guides banks to further cut deposit rates

Economy

Reuters exclusively reported that members of China’s “interest rate self-regulatory mechanism,” mostly banks, met this month and were urged to reduce deposit rates as a way to guide the country’s savings into spending and more productive investments.

Market Impact

Household savings surged 9.9 trillion yuan for the first quarter, after record growth of 17.8 trillion yuan last year. Net interest margins, a key measure of banks’ profitability, hit a record low of just 1.91% during the fourth quarter of 2022. With margins so low, lower deposit rates will to aid the economy.  

Article Tags

Topics of Interest: Economy

Type: Reuters Best

Sectors: Economy & Policy

Regions: Asia

Countries: China

Win Types: Exclusivity

Story Types: Exclusive / Scoop

Media Types: Text

Customer Impact: Significant National Story


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