Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
Banks wary of interest rate cut cycle
Adjust font size:

Together with the rate cut, the State Council also scrapped the 5 percent interest gains tax "temporarily."

Analysts said the package is meant to trim borrowing costs for companies against the threat of slowdown. This would also stabilize banks' profits by increasing their liquidity, while not diminishing their interest rate spread. It would also placate millions of savings account holders affected by the reduction in savings interest rate.

"The timing of the policy package is somewhat surprising as the market had expected the central bank to announce some major trading policies after the third plenary session of the Central Committee of the Communist Party of China," said Feng Wei, a Sealand Securities Co analyst. But Feng says, policy makers were driven by the global financial turmoil.

China's rate cut is in sync with moves by other major economies like the United States, United Kingdom and European Union nations.

"We think there is a potential for more economic slowdown and more rate cuts," Feng said. He felt there could be four to five more rate cuts through 2009.

The market too shares this view. Wang Qi, a Morgan Stanley economist, has called for four to five rate cuts through 2009 in China's base interest rates, equal to a cumulative reduction of 1.08-to-1.35 percentage points.

To bankers' relief, the central bank cut both lending and deposit rates this time, leaving them a cushion against the shrinking of interest spread.

However, analysts said, in future, lending rates are more likely to be cut, than savings.

"The tax incentive can't be given yet again and it is unlikely for the central bank to choke the savings rate if inflation continues above 3.8 percent," said Haitong's Qiu.

Banks are also facing greater lending costs.

"The best time to invest in listed banks hasn't come yet," said Feng. He rated the banking industry neutral.

(Shanghai Daily October 13, 2008)

     1   2  


Tools: Save | Print | E-mail | Most Read
Comment
Pet Name
Anonymous
China Archives
Related >>
- Chinese shares open 1.59% higher after interest rate cut
- Economist : Interest rate cut may hint at future trend
- Lending rate cut likely to boost property
- HK stocks advance 1.89% after Fed rate cut
- Yuan rises to record high against USD after Fed rate cut
Most Viewed >>
- China stocks drop 2.71% despite early rise
- Exclusive: Standard Chartered shows confidence amid crisis
- Economist upbeat about Chinese economy
- China to cooperate with other countries to overcome financial crisis
- 'Capital Winter' hit China's video website industry
- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?
主站蜘蛛池模板: 国产精品高清在线观看93| 扒开女同学下面粉粉嫩嫩| 亚洲欧美日韩国产一区图片| 精品国产v无码大片在线看| 国产卡一卡二卡3卡乱码免费| 西西人体欧美大胆在线| 在线看片中文字幕| 一区二区视频在线免费观看| 拔播拔播华人永久免费| 久久大香伊焦在人线免费| 欧洲精品一区二区三区| 亚洲日本一区二区一本一道| 特级aaaaaaaaa毛片免费视频| 免费高清日本完整版| 美女把尿口扒开让男人添| 国产丝袜第一页| 青青青青久在线观看视频| 国产成人亚洲午夜电影| 亚洲综合第一区| 国产精品午夜无码AV天美传媒| 99re久久在热线播放最新地址| 太粗太深了用力点视频| 一本色道久久hezyo无码| 美女张开双腿让男生捅| 国产午夜亚洲精品不卡免下载 | 人妻无码一区二区三区四区| 精品国产人成亚洲区| 四虎成人精品在永久免费| 色视频免费版高清在线观看| 国产内射999视频一区| 高中生的放荡日记h| 国产成人亚洲综合无| 久碰人澡人澡人澡人澡91| 好男人资源免费手机在线观看 | 狠狠干2018| 伊人222综合| 男人进女人下面全黄大色视频| 免费看日b视频| 精品久久8X国产免费观看| 全免费A级毛片免费看网站| 精品国产一区二区三区www|