Less than 3 months later, state-owned large banks have once again lowered deposit interest rates, with interest rates on various deposits generally decreasing

The pace of interest rate cuts by large state-owned banks is indeed not slow.

On the morning of October 18th, Industrial and Commercial Bank of China, Bank of Communications, Bank of China, China Construction Bank, Agricultural Bank of China, and Postal Savings Bank of China successively announced a reduction in the RMB deposit benchmark interest rates.

This deposit rate cut, compared to the last adjustment (starting from July 25th), is less than three months.

A General Decrease of 25 Basis Points

Taking Industrial and Commercial Bank of China as an example, its benchmark interest rates for fixed-term deposits of three months, six months, one year, two years, three years, and five years have all been reduced by 25 basis points, to 0.80%, 1.00%, 1.10%, 1.20%, 1.50%, 1.55%.

In addition, the 1-day notice deposit rate of the bank has decreased by 5 basis points to 0.10%, and the 7-day notice deposit rate has decreased by 25 basis points to 0.45%.

Bank of Communications has also adjusted its deposit rates in a consistent manner. The benchmark interest rates for fixed-term deposits of three months, six months, one year, two years, three years, and five years have all been reduced by 25 basis points, to 0.80%, 1.00%, 1.10%, 1.20%, 1.50%, 1.55%.

Initiating the Sixth Round of Interest Rate Cuts

This is the sixth round of interest rate cuts by domestic commercial banks since September 2022.

On September 15, 2022, the six major state-owned banks in China were the first to initiate the interest rate cut. Before the first round of interest rate cuts, the 5-year fixed-term deposit rate was still at 2.75% annually. Today, two years later, it is only 1.55% annually. In two years, there have been six interest rate cuts, totaling a reduction of 120 basis points (for five-year fixed-term deposits).

It can be said that over the past two years, both domestic deposit and loan interest rates have been gradually and firmly declining.

Just Before the Implementation of Existing Home Loan Rate Cuts

The timing of this deposit rate cut is also quite interesting.

In terms of time intervals, it is very close to the last time the interest rates of large state-owned banks were cut, even less than 3 months.

This highlights the strong willingness of relevant parties to actively use monetary tools and means to promote high-quality economic development.

In terms of specific timing, this deposit rate cut comes just before the implementation of existing home loan rate cuts, aiming to guide the steady decline of deposit rates and further stabilize the interest rate spread of commercial banks