China Banks Raise Deposit Rates Hours After Policy Easing
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China’s biggest lenders raised deposit rates hours after the central bank lowered its benchmark and gave them more freedom over pricing, underscoring the competition for funds and driving their shares lower.
Industrial & Commercial Bank of China Ltd. and its four biggest rivals set the rate on demand deposits at 0.44 percent, according to their websites. That’s the maximum allowed under new rules that let them pay 1.1 times the 0.4 percent policy rate. The People’s Bank of China yesterday lowered the key one-year deposit and lending rates by 0.25 percentage point.