In order toimplement tight monetary policy, the PBC has decided to raise RMB benchmark depositand lending rates of financial institutions as of December 21, 2007. The one-year benchmark deposit rate is raised from thecurrent level of 3.87% to 4.14%, up 0.27 percentage points. The one-year benchmarklending rate is raised from the current level of 7.29% to 7.47%, up 0.18percentage points. Benchmark deposit and lending rates at other maturities areadjusted accordingly. The interest rate for individual housing provident fundloans remains unchanged (see the table below). These adjustments are conduciveto preventing the economy from overheating, and to preventing structural pricerises from evolving into apparent inflation.
Table
Adjustment of RMB Benchmark Deposit and Lending Rates
| Unit: % |
|||
| Item |
Rate(before adjustment) |
Rate(after adjustment) |
Adjustment |
| 1.Household and corporate deposits |
|||
| 1.1 Demand deposit |
0.81 |
0.72 |
-0.09 |
| 1.2 Time deposit of lump-sum deposit and withdrawal |
|||
| 3-month |
2.88 |
3.33 |
0.45 |
| 6-month |
3.42 |
3.78 |
0.36 |
| 1-year |
3.87 |
4.14 |
0.27 |
| 2- year |
4.50 |
4.68 |
0.18 |
| 3-year |
5.22 |
5.40 |
0.18 |
| 5- year |
5.76 |
5.85 |
0.09 |
| 2.Loans |
|||
| 6-month |
6.48 |
6.57 |
0.09 |
| 1-year |
7.29 |
7.47 |
0.18 |
| 1 to 3-year |
7.47 |
7.56 |
0.09 |
| 3 to 5-year |
7.65 |
7.74 |
0.09 |
| Over 5-year |
7.83 |
7.83 |
0.00 |
| 3. Individual housing provident fund loans |
|||
| Below 5-year (inclusive) |
4.77 |
4.77 |
0.00 |
| Above 5-year |
5.22 |
5.22 |
0.00 |
