Charts: China’s real deposit rates turning positive
9 June, 2012, 10:23. Posted by Zarathustra
The latest inflation figure of 3.0% in May means the real deposit rate for 1 year turned even more positive in May. And although the PBOC cuts interest rates 2 days ago, they are also lifting the ceiling banks can priced their deposit rates, which means that bank deposits rates can now potentially go even higher than before the rate cut, and that means real interest rates will most probably trend even higher as the inflationary environment has turned into a deflationary one.
Source: National Bureau of Statistics, People’s Bank of China
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About Zarathustra
Zarathustra: Founder and Managing Editor of Also sprach Analyst. Once an analyst, now an investor and entrepreneur. Based in Hong Kong, but Londoner at heart.