The big state-owned banks of China announce that they will cut deposit rates on December 22. In particular, the listed interest rates for deposits with maturities of one year and less, 2 years, 3 years and 5 years will be reduced by 10 basis points, 20 basis points, 25 basis points and 25 basis points, respectively.
Industrial and Commercial Bank of China announces that the whole deposit interest rates for three-month, six-month, one-year, two-year, three-year and five-year period will be adjusted to 1.15 percent, 1.35 percent, 1.45 percent, 1.65 percent, 1.95 percent and 2 percent, respectively.
Other large, medium and small banks will likely follow big banks’ move in cutting deposit rates later. The aim of deposit cut is to lower the cost of consumption and investment, to further boost the vitality of micro entities, and to accelerate economic recovery.