Doha: China’s major commercial banks have announced a reduction in the one-year fixed-term deposit interest rate by 15 basis points to 0.95 percent. This decision involves key financial institutions including the Industrial and Commercial Bank of China, Bank of China, China Construction Bank, Agricultural Bank of China, and China Merchants Bank.

According to Qatar News Agency, after the adjustment, the fixed-term deposit rates have been set at 1.05 percent for two years, 1.25 percent for three years, and 1.3 percent for five years. This development is part of a series of deposit rate cuts that took place in July and October 2024.

In addition, China has reduced its market-based benchmark lending rates. The one-year loan prime rate (LPR) has been decreased to 3 percent from the previous rate of 3.1 percent. Meanwhile, the over-five-year LPR, a reference for many mortgage lenders, has been lowered to 3.5 percent from 3.6 percent.

Earlier in the year, China initiated its first policy rate cut in May, reducing the seven-day reverse repo rate from 1.5 percent to 1.4 percent.