PBOC to Lower Sector-Specific Rates

2026-01-16 00:03 By Chusnul Chotimah 1 min. read

China’s central bank announced on Thursday cuts to sector-specific interest rates to provide an early boost to the economy, and signalled that it has room this year for further reductions in banks’ cash reserve requirements and broader rate cuts, as Reuters reported.

Zou Lan, deputy governor of the People’s Bank of China (PBOC), said it would lower interest rates on its structural monetary policy tools by 25 bps on January 19, a move that tends to have a limited impact on growth compared with cuts to benchmark policy rates.

The one-year relending rate will be reduced from 1.5% to 1.25%, with rates for other maturities adjusted accordingly.

Structural monetary policy tools are central bank instruments designed to target specific sectors or areas of the economy, such as small firms, tech innovation, and green development.

Outstanding loans made via structural tools totalled CNY 5.9 trillion ($846.84 billion) at the end of March 2025, central bank data showed.



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China’s central bank announced on Thursday cuts to sector-specific interest rates to provide an early boost to the economy, and signalled that it has room this year for further reductions in banks’ cash reserve requirements and broader rate cuts, as Reuters reported. Zou Lan, deputy governor of the People’s Bank of China (PBOC), said it would lower interest rates on its structural monetary policy tools by 25 bps on January 19, a move that tends to have a limited impact on growth compared with cuts to benchmark policy rates. The one-year relending rate will be reduced from 1.5% to 1.25%, with rates for other maturities adjusted accordingly. Structural monetary policy tools are central bank instruments designed to target specific sectors or areas of the economy, such as small firms, tech innovation, and green development. Outstanding loans made via structural tools totalled CNY 5.9 trillion ($846.84 billion) at the end of March 2025, central bank data showed.
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