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Deposit Rate Cuts Reportedly Latest Part of China Stimulus Drive

  • 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.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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