China Cuts Interest Rates on Deposits: Interest...

China Cuts Interest Rates on Deposits: Interest rates on bank deposits were reduced by 1.26 percentage points in a move aimed at stimulating China’s sluggish economy. The People’s Bank of China said the new rates would apply to deposits by individuals, enterprises and institutions, the official press reported. The interest rate on a one-year deposit will fall to 10.08% from 11.34%, while the rate for a three-year deposit will drop to 11.88% from 13.14%. Lower deposit rates could encourage people to put less of their income into savings and spend more, giving the economy a needed boost. The action on deposit rates follows a decision by the central bank to lower interest rates on business loans, also by 1.26 percentage points, on March 21.