A number of Chinese banks cut interest rates on yuan deposits early on Friday, while cited the willingness to alleviate the pressure of the drop in mortgage ratesas reported by Reuters.
Among them, ICBC, China Industrial Bank, Agricultural Bank of China and Bank of China (BoC) grabbed the spotlight.
That being said, the ICBC and the BoC cut the one-year yuan deposit rate by 10 basis points (bps) to 1.55% and cut the two-year rate by 20 bps to 1.85% as of September 1st. In addition, three- and five-year deposit rates were reduced by 25 bp.
“Some state banks are expected to lower interest rates on existing mortgages soonas Beijing redoubles its efforts to revive the real estate sector, affected by the debt crisis, and shore up an economy in crisis, “says Reuters.
It should be noted that the central bank of China, The People’s Bank of China (PBoC) has also announced early on Friday that it will reduce the foreign exchange reserve requirement ratio from 6% to 4%. as of September 15.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
