中國央行

China’s central bank in talks to cut rate banks pay to savers

China’s central bank is in discussions to cut the interest rate banks pay on deposits for the first time since 2015, in a bid to help banks eke out higher profits as they are enlisted to help spur an economic recovery following the coronavirus outbreak.

The country’s economy has been brought to a standstill since the global pandemic started in January. But the PBoC’s response to the crisis has been relatively muted compared to efforts in the US and Europe, where billions of dollars are being deployed by central banks to fight a global recession.

Chinese banks have been recruited, however, to help boost the economy. They have been told to extend loans to struggling companies, lower lending rates and increase their tolerance for bad debt created during the crisis.

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