China will reduce interest rates across several structural monetary policy tools by 25 basis points and significantly expand funding aimed at supporting technological innovation, the central bank said on Thursday.
The People’s Bank of China announced that it will increase its re-lending programme for tech-focused sectors by 400 billion yuan, lifting the total size of the facility to 1.2 trillion yuan (about $57.37 billion). The move is intended to channel more low-cost funding into innovation-driven industries and support economic growth.
Speaking at a press conference, Deputy Governor Zou Lan said the central bank will also cut the interest rate on one-year re-lending facilities to 1.25%, down from the previous 1.5%. The adjustment underscores Beijing’s broader push toward targeted monetary easing rather than across-the-board rate cuts.
The latest measures highlight China’s efforts to stabilise growth by easing financing conditions for priority sectors, while maintaining a focused and flexible policy approach.
