ICYMI – China’s state banks are expected to cut deposit rates today (Tuesday China time)

China’s major state banks expected to cut their deposit rates today

• will cut rates on some fixed-term deposits
• no indication of the scale of the rate cuts has been given

The cuts would be part of stimulus efforts from China. The People’s Bank of China cut its 7 day reverse repo benchmark rate by 10bp to 1.4% earlier this month. Governor Pan Gongsheng said a 10 basis point cut will lead to a reduction in the benchmark loan prime rate (LPR) of the same size.The monthly LPR fixing is due at 0100 GMT.

LPR cuts should help banks lower their funding costs. Chinese banks are under pressure to support economic growth amid a property crisis, weak loan demand and record low interest margins.

This article was written by Eamonn Sheridan at www.forexlive.com.