Di Yi Cai Jing·2025-06-19 04:54Core Viewpoint - The report from Rong360 Digital Technology Research Institute indicates a significant decline in bank deposit rates, with medium to long-term rates entering the "1 era" for the first time since 2025, following a series of rate cuts by major banks [5][6]. Group 1: Deposit Rate Trends - The average interest rates for fixed-term deposits in May were reported as follows: 3-month at 1.004%, 6-month at 1.212%, 1-year at 1.339%, 2-year at 1.428%, 3-year at 1.711%, and 5-year at 1.573% [1][3]. - Month-on-month changes showed a decline in average rates across all terms, with the 3-month rate down by 24.3 basis points (BP), 6-month by 23.5 BP, 1-year by 22.3 BP, 2-year by 23.0 BP, 3-year by 30.3 BP, and 5-year by 30.0 BP [3][4]. - Notably, the 5-year average rate is 0.14 percentage points lower than the 3-year rate, indicating a severe inversion in rates [3]. Group 2: Large Denomination Certificates of Deposit (CDs) - The average interest rates for large denomination CDs also decreased, with 3-month at 1.239%, 6-month at 1.459%, 1-year at 1.561%, 2-year at 1.648%, 3-year at 2.069%, and 5-year at 1.700% [4]. - The month-on-month declines for large denomination CDs were 10.24 BP for 3-month, 11.26 BP for 6-month, 12.25 BP for 1-year, 13.75 BP for 2-year, 8.81 BP for 3-year, and 28.33 BP for 5-year [4]. Group 3: Structured Deposits - The average term for RMB structured deposits in May was 90 days, unchanged from the previous month but shortened by 12 days compared to the same period last year, with an average expected middle yield of 1.85% [4]. - The average expected maximum yield for structured deposits varied by bank type, with state-owned banks at 2.18%, joint-stock banks at 2.23%, city commercial banks at 2.25%, and foreign banks at 4.35% [4]. Group 4: Market Response and Future Outlook - Major state-owned banks initiated a significant reduction in deposit rates on May 20, marking the first large-scale adjustment since 2025 and the seventh rate cut since October 2024 [5]. - Analysts suggest that the central bank will continue to implement a moderately loose monetary policy to lower corporate financing costs and stimulate economic recovery, indicating a continued downward trend in deposit rates [6].