China Urges Banks to Cut Deposit Rates in Bid to Support Economy

Chinese authorities urged commercial lenders on Friday to lower their deposit rates, according to people familiar with the matter, the government’s latest effort to shore up the world’s second-largest economy.

It was recommended to banks that they reduce premiums offered to savers over the benchmark deposit rate by 10 basis points across all tenors, said the people, who asked not to be identified. The request was communicated through the so-called interest rate self-disciplinary mechanism that’s overseen by China’s central bank.

While not mandatory, lenders that follow the request will have their scores boosted when the People’s Bank of China does ...