Major Chinese banks cut interest rates on yuan deposits

Coins and banknotes of China’s yuan are seen in this illustration picture taken February 24, 2022. REUTERS/Florence Lo/File photo

BEIJING  – The Industrial and Commercial Bank of China and Bank of China on Friday cut deposit rates by at least 10 basis points to help ease pressure from narrower margins as lenders move to lower mortgage rates.

ICBC and BOC cut their one-year yuan deposit rate by 10 basis points to 1.55 percent and their two-year yuan deposit rate by 20 basis points to 1.85 percent with immediate effect, according to statements on their websites.

Three- and five-year deposit rates were cut by 25 basis points.

The Agricultural Bank of China also made similar reductions.

Some state-owned banks are expected to soon lower interest rates on existing mortgages as Beijing ramps up efforts to revive the debt crisis-hit property sector and bolster a sputtering economy.