Banks Cut Deposit Rates, 1-Year Terms Now Average 5.3% As Credit Demand Stays Weak

• Over 20 banks cut deposit interest rates in last month, highest now 5.3% for 12-month deposits • Only 3 lenders hiked rates, but only for selected terms • 10 banks offer over 5% for 1-year deposits, most common term • Rates expected to stay low until mid-year, then may rise slightly as credit demand picks up • Loans outstanding down 0.72% from late last year, indicating weak demand for loans