After the new policy takes effect this week, the big five banks have all set their one year savings deposit rates at 3.5%, unchanged from before the move.

FORBES: China Beyond The Rate Cuts

Last year, the government began breaking up the local cartel in savings and time deposit rates, leading to increased competition for retail funds.

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But in China, where most savings are in the form of bank deposits and where earnings on savings are a significant portion of total household earnings, lowering deposit rates tends to increase the savings rate.

WSJ: China's Consumption Conundrum