Mei Ri Jing Ji Xin Wen·2025-05-19 22:13Core Viewpoint - China Merchants Bank has updated its savings deposit interest rates, effective from May 20, 2025, with notable reductions in various terms [2][5]. Group 1: Interest Rate Adjustments - The bank has lowered the interest rate for demand deposits from 0.1% to 0.05% [5]. - The interest rates for fixed-term deposits have also been reduced, with the three-month rate at 0.65%, six-month at 0.85%, one-year at 0.95%, and two-year at 1.05%, each down by 15 basis points [5]. - The three-year and five-year fixed-term deposit rates are now at 1.25% and 1.3%, respectively, down by 25 basis points [5]. Group 2: Market Expectations - The market had anticipated this adjustment following the People's Bank of China's announcement to guide commercial banks in lowering deposit rates [6]. - The central bank also reduced the policy rate by 0.1 percentage points, which is expected to lead to a similar decrease in the Loan Prime Rate (LPR) [6]. Group 3: Historical Context and Trends - Historically, major banks have collectively adjusted their deposit rates, with smaller banks following suit shortly after [7]. - The chief economist at CITIC Securities noted that the market may see another round of deposit rate adjustments in the second and third quarters of this year, based on past patterns [7]. - Three key trends in deposit rate cuts were identified: major banks lead the way, the time intervals between cuts range from 3 to 9 months, and banks may use various methods to control deposit rates beyond direct adjustments [7].