PBOC Cuts Structural Monetary Policy Rates by 0.25 Percentage Points, Signaling Support for Economic Restructuring

rugpull_ptsd · 2026-01-26T08:28:32+00:00

China's central bank has cut interest rates by 0.25 percentage points across key monetary policy tools to ease lending conditions and support economic transformation, targeting priority sectors for growth and structural optimization.

rugpull_ptsd

2026-01-26 08:28:32

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China’s central bank has announced a significant adjustment to its monetary policy framework. PBOC Deputy Governor Zou Lan revealed during the State Council Information Office press conference on January 15 that interest rates across its structural monetary policy tools will be reduced by 0.25 percentage points, marking a targeted move to ease lending conditions and facilitate ongoing economic transformation.

Re-lending Facilities See Immediate Rate Reductions

The reduction by 0.25 percentage points will be applied across multiple structural tools, with the one-year re-lending rate now set at 1.25%. Other lending facilities with different tenors will experience proportional adjustments. This tiered approach allows the PBOC to calibrate support based on specific economic needs and lending durations, ensuring funds flow to priority sectors supporting structural optimization.

Strengthening Support for Structural Economic Transformation

The policy shift underscores PBOC’s commitment to refining structural instruments and amplifying support for economic restructuring. By lowering borrowing costs through the 0.25 rate trim, the central bank aims to accelerate the transition toward a more balanced and optimized economic model. These structural tools are designed to encourage lending to emerging industries, green sectors, and other areas critical to China’s long-term development goals while supporting the broader transition away from traditional growth drivers.

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