China's Big Banks Signal Monetary Easing with Deposit Rate Cuts

China's six state-owned commercial banks have cut interest rates for savers in a bid to boost economic growth in an economy where consumption has been slow to recover. The deposit rate cuts help improve banks' profitability and set the stage for the People's Bank of China to reduce other interest rates. Lower interest rates give businesses more incentive to borrow, but it's not a given that lower deposit rates will translate immediately into greater spending. The PBOC is expected to release the medium-lending facility interest rate on June 15 and the loan prime rate on June 20.