The reduction in deposit interest rates is significant and the decrease is fast, reflecting the high pressure on banks' interest rate spreads.

Since May 20, many city commercial banks and private banks have quickly followed the reduction of deposit rates, with some banks reducing their rates by as much as 30 basis points. Compared to the deposit rate cuts last October and the corresponding LPR adjustments, this round of bank deposit rate cuts appears to have the characteristics of "large magnitude and quick follow-up", reflecting the significant pressure on net interest margins in the banking industry. In addition, industry insiders have indicated that this significant reduction in deposit rates may trigger a noticeable effect of deposit migration.