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More Bank Deposit Rate Cuts Expected

CHINA PRESS
MNI (Singapore)

Commercial banks are expected to follow major state-owned banks in cutting deposit rates, according to Wang Qing, chief macro analyst at Golden Credit Rating. Rates may continue to decline until the real estate industry can stabilise, Wang added. Six major state-owned banks lowered one year or less deposit rates by 10 basis points, and two to five year rates by 20 bps on Thursday. Banks will benefit from eased pressure on net interest margins and improve profitability, said Ming Ming, chief economist of CITIC Securities, who noted the cuts create room for lower lending rates.

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