The People's Bank of China announced on 15 January 2026 that it would reduce the rates on all of its structural monetary policy instruments by 25 basis points, with the cuts to relending and rediscount rates taking effect from 19 January. The one-year relending facility rate will fall from 1.50 per cent to 1.25 per cent under the adjustment.
The reduction spans the full suite of structural instruments the PBoC maintains for directing credit to specific segments of the economy, including support tools for agriculture, small and micro enterprises, green development, technological innovation, and other policy-prioritised areas.
POLICY STANCE
The PBoC has characterised its current monetary policy posture as moderately loose.