Economics
Falling Deposit Rates in China May Help Banks Cut Loan Costs
- Banks could adjust key lending rate again, economists say
- Central bank report reaffirms proactive stance on economy
This article is for subscribers only.
China’s central bank repeated a pledge to proactively address mounting economic pressure and also highlighted a drop in deposit rates, a decline that could spur banks to lower the cost of borrowing for the first time in months.
The People’s Bank of China reaffirmed it will focus on supporting small businesses, sectors and groups hit by Covid outbreaks, and vowed to use various monetary policy tools to keep overall liquidity ample, according to its first-quarter monetary policy report published Monday.