China cuts market-based lending rates norms; banks cut interest rates

20 May '25

1 min read

China cuts market-based lending rates norms; banks cut interest rates

Pic: NGCHIYUI / Shutterstock

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Major commercial banks in China have today reduced deposit interest rates, the first this year.
The Industrial and Commercial Bank of China, the Bank of China, the China Construction Bank, the Agricultural Bank of China and the China Merchants Bank lowered the one-year fixed-term deposit interest rate by 15 bps to 0.95 per cent.
The market-based benchmark lending rates were also cut.

Major commercial banks in China today announced reductions in deposit interest rates, the first this year. This decision follows two rounds of deposit rate cuts in July and October last year.

The Industrial and Commercial Bank of China, the Bank of China, the China Construction Bank, the Agricultural Bank of China and the China Merchants Bank announced lowering the one-year fixed-term deposit interest rate by 15 basis points to 0.95 per cent.

After the adjustment, the rates for fixed-term deposits now stand at 1.05 per cent for two years, 1.25 per cent for three years and 1.3 per cent for five years.

The market-based benchmark lending rates were also cut, with the one-year loan prime rate (LPR) down to 3 per cent from 3.1 per cent earlier. The over-five-year LPR was lowered to 3.5 per cent from 3.6 per cent earlier, a state-controlled news agency reported.

The country earlier this month implemented its first policy rate cut of the year, lowering the seven-day reverse repo rate from 1.5 per cent to 1.4 per cent.

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