Recently, a rumor that “some local banks in Zhejiang will cut deposit interest rates starting Wednesday” shook the market and caused large fluctuations in the bond market. The reporter verified and learned from many sources that this adjustment is a local self-regulatory upper limit adjustment for deposit interest rates for specific banks; it is not a sign of a comprehensive “interest rate cut.” A number of Zhejiang bankers confirmed to reporters that the Zhejiang interest rate self-regulation mechanism issued notices to urban commercial banks and agricultural commercial banks under its jurisdiction to adjust interest rate self-regulation limits for two-year, three-year, and five-year deposits. Each of the three terms was reduced by 5 BP, and officially implemented on July 22. Dong Ximiao, chief economist of CMB, pointed out to reporters that the scope of this adjustment is limited to commercial banks and agricultural commercial banks in Zhejiang Province. The local self-regulatory mechanism issues notices, and does not involve major state-owned banks or national stock banks. This is an adjustment of the regional self-regulation mechanism, nor does it represent the beginning of a new round of comprehensive “wave of interest rate cuts.”

Recently, a rumor that “some local banks in Zhejiang will cut deposit interest rates starting Wednesday” shook the market and caused large fluctuations in the bond market. The reporter verified and learned from many sources that this adjustment is a local self-regulatory upper limit adjustment for deposit interest rates for specific banks; it is not a sign of a comprehensive “interest rate cut.” A number of Zhejiang bankers confirmed to reporters that the Zhejiang interest rate self-regulation mechanism issued notices to urban commercial banks and agricultural commercial banks under its jurisdiction to adjust interest rate self-regulation limits for two-year, three-year, and five-year deposits. Each of the three terms was reduced by 5 BP, and officially implemented on July 22. Dong Ximiao, chief economist of CMB, pointed out to reporters that the scope of this adjustment is limited to commercial banks and agricultural commercial banks in Zhejiang Province. The local self-regulatory mechanism issues notices, and does not involve major state-owned banks or national stock banks. This is an adjustment of the regional self-regulation mechanism, nor does it represent the beginning of a new round of comprehensive “wave of interest rate cuts.”