Chinese Regulators Instruct Banks to Lower Interbank Deposit Rates to 1.5% Starting Dec. 1

Nov 7, 2024, 06:17 AM

Chinese regulators have instructed the nation’s banks to lower the rates they pay on deposits from other financial institutions. This move aims to free up funds to boost the economy. The new rates will align closer to the 7-day reverse repo rate of 1.5%, starting December 1. Currently, some banks pay rates as high as 1.8% or more to attract funds from financial institutions. Bloomberg News reports.