Logo 02 Apr 2026

Banks’ NIM pessimism makes 2026 rate cut unlikely

Subscribe to keep reading.

Trivium Markets keeps you briefed on the latest developments in China markets policy.

Already a subscriber? Log in.

A rate cut this year is less likely than we previously thought. Some context: On January 15, central bank (PBoC) Deputy Governor Zou Lan said that banks’ net interest margins (NIMs) – the main constraint on rate cuts – will improve this year due to the maturation of long-term deposits. Per Zou, this...