PBC Decides to Cut Benchmark Deposit and Loan Rates
and Reserve Requirement Ratio
In order to implement moderately loose
monetary policy, ensure sufficient liquidity supply in the banking system,
promote stable money and credit growth, and make monetary policy play an active
role in supporting economic growth, the People´s Bank of China has decided to cut RMB benchmark deposit and loan rates
and the reserve requirement ratio for financial institutions.
As of November 27, 2008, the one-year RMB benchmark deposit and loan rates
are to be lowered by 1.08 percentage points. Benchmark deposit and loan rates for
other maturities are to be adjusted accordingly. Meanwhile, the interest rates
on central bank re-loans and rediscounts are to be lowered.
As of December 5, 2008, the RMB reserve requirement ratio is to be lowered
by 1 percentage point for large depository financial institutions, including the
Industrial and Commercial Bank of China, the
Agricultural Bank of China, the Bank of China, the China Construction
Bank, the Bank of Communications and the Postal Savings Bank of China. The RMB reserve requirement ratio is to be lowered
by 2 percentage points for small and medium-sized depositary financial
institutions. The preferential reserve requirement ratio for rural financial
institutions and the financial institutions in the areas hit by Wenchuan
earthquake remain unchanged.
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Table
Adjustment of RMB Interest Rates
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Unit：%
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Rate (before adjustment)
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Rate (after adjustment)
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RMB benchmark
deposit rates for financial institutions
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Demand deposits
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0.72
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0.36
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3-month
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2.88
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1.98
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6-month
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3.24
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2.25
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1-year
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3.60
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2.52
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2-year
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4.14
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3.06
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3-year
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4.77
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3.60
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5-year
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5.13
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3.87
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RMB benchmark
loan rates for financial institutions
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6-month
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6.03
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5.04
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1-year
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6.66
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5.58
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1 to 3-year
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6.75
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5.67
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3 to 5-year
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7.02
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5.94
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Over 5-year
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7.20
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6.12
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Interest
rates on individual housing provident fund loans
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Below 5-year (inclusive)
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4.05
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3.51
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Over 5-year
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4.59
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4.05
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Interest
rates on deposits from financial institutions in PBC
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Required Reserve
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1.89
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1.62
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Excess Reserve
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0.99
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0.72
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Interest rates on loans to financial
institutions by PBC
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20-day
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4.14
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3.06
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3-month
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4.41
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3.33
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6-month
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4.59
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3.51
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1-year
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4.68
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3.60
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Rediscount
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4.32
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2.97
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