Free Trial

Deposit Rate Cuts Reportedly Latest Part of China Stimulus Drive

CHINA
  • Bloomberg report that China's largest banks are considering lowering deposit rates for potentially the third time this year, as part of a stimulus drive to boost domestic growth. The piece writes that local currency deposits across key tenors could be cut by 5- to 20bps, with regulators having already signed off on the plan. A formal announcement could follow on Friday.
  • This wouldn't be the first time large banks have cut deposit rates as part of an orchestrated stimulus drive. Back in early July "China's largest banks are cutting rates for their corporate USD deposit facilities for the second time in a fortnight - an extension of a recent policy drive to stabilise the currency."
  • USD/CNH moves slightly higher on the headline, re-approaching yesterday's highs at 7.3057.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.