The People's Bank of China adjusted several monetary policy tools to support economic growth and financial market stability under its moderately accommodative policy stance. It cut the one-year pledged supplementary lending rate by 0.25 percentage points to 1.5%, broadened the facility’s scope and increased targeted relending quotas for technology, agriculture, small businesses and private enterprises. Pledged supplementary lending will now cover investment in six network categories: water, next-generation power, computing capacity, next-generation communications, urban underground pipelines and logistics. The central bank raised the technology innovation and equipment upgrade relending quota by CNY 200 billion to CNY 1.4 trillion and increased its support ratio from 60% to 100%. It also added CNY 500 billion to the agriculture and small business relending quota, including CNY 300 billion for private enterprises. This lifts the combined agriculture and small business relending and rediscount quota to CNY 4.85 trillion, with the private enterprise allocation rising to CNY 1.3 trillion.
People's Bank of China cuts pledged supplementary lending rate to 1.5% and adds CNY 700 billion in targeted relending
The People's Bank of China cut the one-year pledged supplementary lending rate by 0.25 percentage points to 1.5% and expanded the facility to six infrastructure network categories. It also added CNY 200 billion for technology innovation and equipment upgrades and CNY 500 billion for agriculture and small businesses, including CNY 300 billion for private enterprises.