Chinese banks have been instructed by regulators to lower the interest rates on interbank deposits in order to stimulate economic growth. The goal is to increase the availability of funds for lending and investment, which is crucial for strengthening the economy in the face of ongoing challenges.

The central bank's interest rate self-disciplinary mechanism has recommended that banks align their interbank deposit rates with the current 7-day reverse repo rate of 1.5% annually. This measure is part of broader efforts to improve liquidity in the financial system and support economic activity.