When will China's central bank cut interest rates and reserve requirements?

China's central bank announced plans to cut interest rates and reserve requirement ratios in 2026.

What is China's central bank's plan for monetary policy in 2026?

The central bank plans to implement appropriately loose monetary policy, including rate cuts and maintaining ample liquidity.

Why is China's central bank adjusting its monetary policy?

The adjustments aim to boost domestic demand, improve supply, defuse financial risks, and support steady economic growth.

Home / Business and Economy / China's Central Bank Slashes Rates in 2026

China's Central Bank Slashes Rates in 2026

6 Jan

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Summary

Central bank will cut reserve requirement and interest rates in 2026.
Policy aims to keep liquidity ample and support steady economic growth.
Monetary policy will focus on boosting domestic demand and defusing risks.

China's Central Bank Slashes Rates in 2026

China's central bank is set to cut its reserve requirement ratio and interest rates in 2026, signaling a commitment to an appropriately loose monetary policy. These measures are intended to ensure ample liquidity and provide robust support for steady economic growth as the nation embarks on its new five-year plan.

The bank will intensify its counter-cyclical and cross-cyclical adjustments, focusing on stimulating domestic demand and enhancing supply capabilities. A key objective of this proactive approach is to effectively mitigate financial risks, thereby paving the way for a stable economic trajectory.

This forward-looking strategy aligns with prior pledges made by top leaders in December, reinforcing the commitment to monetary flexibility. The central bank also intends to maintain a stable yuan exchange rate at a reasonable and balanced level throughout the period.

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