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Banks May Lower Deposit Rates Further

CHINA PRESS
MNI (Singapore)

The banking sector could further cut deposit rates causing depositors to seek higher returns from financial management products, Securities Daily reported citing Wang Qing, analyst at Golden Credit Rating. Smaller banks have followed state-owned banks in cutting deposit rates up to 80 basis points since August, bringing medium- and long-term deposits to just over 2%, the newspaper said. The move would support banks to stabilise net interest margin and allow for loan interest rates reductions, the newspaper said, citing analysts.

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