Overview
- The People's Bank of China said it will lower rates on structural policy tools as part of a new package of monetary and financial measures.
- The one-year relending facility will be reduced by 25 basis points to 1.25% from 1.50%.
- The rate trim is designed to cut banks' funding costs and supply cheaper liquidity.
- Officials aim to spur lending to small and medium-sized enterprises through the targeted facility.
- Analysts note the step addresses supply-side constraints but not soft credit demand tied to the property slump and 2025's weak loan growth.