China’s Banks Set to Cut Interest Rates on Deposits Again

China’s state-owned banks and other large commercial banks plan to lower the interest rates they pay on deposits starting Friday, kicking off a third round of cuts since September 2022 under government pressure to encourage spending over saving in support of the flagging economy.

Several bankers told Caixin that their banks will lower the rates they pay on one-year time deposits by 0.1 of a percentage point, on two-year deposits by 0.2 of a percentage point, and on three- and five-year time deposits by 0.25 of a percentage point.