China's biggest banks cut interest rates on deposits, which analysts said may have marked the biggest cut since 2016 and will likely help create room for benchmark lending rates to decline early next year.
China's Ministry of Finance has rolled out policies to boost inclusive finance in the next five years. These policies will take effect on Oct. 1.
It is advisable for the government to take further steps to stabilize the economy, such as speeding up the issuance of local government special bonds, further reductions in the reserve requirement ratio and interest rate cuts.
China may need to comprehensively reduce interest rates in the near future, ranging from lending rates for homebuyers and private companies to deposit interest rates, as boosting domestic demand has become a top policy priority, experts said on Monday.
The People's Bank of China, the country's central bank, cut key policy interest rates by 10 basis points on Monday, a move aimed at helping facilitate the country's economic recovery.