The move here is part of the country's efforts to convert household savings into consumption as well as more productive investment activities, in order to try and bolster the economy further amid the pandemic recovery.
The report says that members of China's "interest rate self-regulatory mechanism" (mostly banks) met this month and were urged to reduce deposit rates, after receiving guidance from the PBOC.
One of the sources said that "the message is that banks need to collectively bring down deposit rates". Adding that even with money being injected into the banking system, "what is the point if people save every cent they get, instead of spending or investing?".
This is but another headline and story that confirms China's pledge to prop up economic activity as the country continues to recover from the end of Covid-19 restrictions in December last year.
