It is reported that China has asked banks to lower their rate ceilings on some retail and corporate deposits, starting from 15 May. And that the big four state-owned banks are to lower their rate ceilings by 30 bps, with some other financial institutions even called to cut by 50 bps.

If you recall, this builds on the story from two weeks ago here. This is largely to encourage more spending and investing activity in the country as the government is trying to prop up economic activity, instead of encouraging savings.

This article was written by Justin Low at www.forexlive.com.