Recently, interest rates on medium- to long-term time deposits in some banks have been “inverted”, and interest rates on 5-year time deposits are less than 3-year interest rates. However, 3-year and 5-year interest rates usually don't differ much, mostly between 5 and 15 basis points. The account manager of Hubei Jingmen Agricultural Commercial Bank said, “The Bank's policy is that the 5-year interest rate is lower than the 3-year term, probably to reduce longer-term deposits.” Wen Bin, chief economist at Minsheng Bank, said that as loan interest rates continue to decline, the downward trend in interest spreads is expected to continue, and low interest rates and low interest spreads will become the norm. In order to maintain the steady and sustainable operation of banks, deposit interest rates can be expected to be further lowered. (Securities Times)