Core Viewpoint - The Federal Reserve's recent decision to lower the federal funds rate target range by 25 basis points to 4.00%-4.25% has prompted significant attention towards the domestic dollar deposit rates in China, with many banks beginning to adjust their rates downward in response to the Fed's actions [1][4]. Group 1: Current Dollar Deposit Rates - Various banks in China are currently offering dollar deposit rates above 3%, with some products still maintaining attractive rates [3]. - For instance, Jiangsu Bank offers a 1-year dollar deposit rate of 3% with a minimum deposit of $5,000, while other banks like Guangfa Bank and Chongqing Bank provide rates as high as 3.4% and 3.95% respectively for higher deposit amounts [3][4]. - Foreign banks, such as Standard Chartered, are also maintaining relatively stable rates, with their 1-year dollar deposit rate reaching up to 3.6% [3]. Group 2: Rate Adjustments Post-Fed Decision - Several banks have already initiated rate cuts following the Fed's announcement, with Huashang Bank reducing its short-term dollar deposit rates by 25 basis points across various terms [4]. - Xi'an Bank plans to lower its dollar deposit rates by the end of September, with significant reductions across all terms [4]. - Guangdong Huaxing Bank has already completed its rate adjustments, with the 1-year rate for deposits over $100,000 now at 3.9% [4]. Group 3: Future Rate Trends - Experts predict a downward trend in dollar deposit rates due to the Fed's actions, with expectations of further rate cuts in the coming years [6]. - The Chief Economist at CITIC Securities suggests that domestic banks will likely lower their dollar deposit rates to reduce liability costs, although the timing may vary based on individual bank circumstances [6]. - Predictions indicate that the Fed may implement two more rate cuts by 2025, which could further pressure domestic dollar deposit rates [6]. Group 4: Consumer Behavior and Considerations - Some consumers are taking proactive measures to secure higher rates before anticipated cuts, while others remain cautious and rational in their approach to dollar deposits [7]. - The current exchange rate of 1 USD to 7.1173 CNY indicates a strengthening of the yuan, which could impact the real returns on dollar deposits if the trend continues [7]. - There is an expectation that state-owned banks will eventually follow suit with rate adjustments, as market expectations are forming around this possibility [7].