China's biggest banks have lowered interest rates on yuan deposits in an attempt to ease pressure on profit margins and reduce lending costs, providing some relief for the financial sector and wider economy.
Lenders including Industrial and Commercial Bank of China, China Construction Bank and Bank of China are now offering 2.45% and 2.50%, respectively, on three- and five-year time deposits, down by 15 basis points from September, according to their websites.
Similar cuts were seen at the Postal Savings Bank of China, Agricultural Bank of China (OTC:ACGBF) and Bank of Communications.
This is the second such cut within a year, with previous action taken in September.
"The deposit rate cuts will push savings into consumption and investment and ease the pressure on banks' net interest margins (NIM), opening the door for further monetary stimulus," said Gary Ng, Asia Pacific senior economist of Natixis, quoted by Reuters.