Core Viewpoint - Major state-owned banks in China have begun to lower deposit interest rates, marking the first round of rate cuts for the year, with specific reductions in various term deposits [1][2]. Group 1: Interest Rate Adjustments - The three-year and five-year deposit rates have been reduced by 25 basis points, while the rates for three-month, six-month, one-year, and two-year deposits have been lowered by 15 basis points. The interest rate for demand deposits has decreased by 5 basis points [1][2]. - For example, a deposit of 200,000 yuan for three years will yield 1,500 yuan less in interest due to the 25 basis point cut [1]. Group 2: Comparison with Previous Rate Cuts - In 2024, there have been two previous rounds of deposit rate cuts on July 25 and October 18. The current round's reductions are smaller compared to the last round, where all term deposits experienced a 25 basis point cut [2]. Group 3: Market Expectations and Reactions - The recent deposit rate cuts were anticipated following the People's Bank of China's (PBOC) recent monetary policy adjustments, including a reduction in the 7-day reverse repurchase rate from 1.50% to 1.40% [3]. - The PBOC's governor indicated that market-driven interest rate adjustments are expected to lead to a corresponding decrease in the Loan Prime Rate (LPR) by approximately 0.1 percentage points [3]. Group 4: Anticipated Actions from Other Banks - Following the lead of state-owned banks, national joint-stock banks are expected to follow suit in adjusting their deposit rates shortly [4]. - Smaller banks have already begun to lower their deposit rates, with specific examples including Guangdong Huaxing Bank reducing its five-year large denomination certificate of deposit rate from 2.5% to 2.35% [4].