China Tells Banks to Cut Interbank Deposit Rates to Boost Growth
- PBOC-backed body issues rule to take effect next month: people
- Banks saw deposits eroded by policy loosening, rally in stocks
The People's Bank of China in Beijing.
Source: Bloomberg
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Chinese regulators told the nation’s banks to lower rates they pay on deposits from other financial institutions to free up funds to boost the economy, according to people familiar with the matter.
China’s interest rate self-disciplinary mechanism, a supervisory body overseen by the central bank, said banks should benchmark the interbank deposit rate against the 7-day reverse repo rate, currently set at 1.5% annually, the people said, asking not to be identified discussing a private matter.