China's central bank signals further RRR, interest rate cuts to bolster growth

The People's Bank of China (PBOC) will continue to implement a moderately loose monetary policy in 2026, and will utilize tools such as reserve requirement ratio (RRR) cuts and interest rate reductions to ensure liquidity remains sufficient, according to central bank governor Pan Gongsheng.

Monetary policy will focus on promoting stable economic growth and reasonable price recovery, with the use of both incremental and existing policies to create a favorable monetary and financial environment for the high-quality development and stable operations of financial markets, Pan told Xinhua in an interview.

"There is still room for further RRR and interest rate cuts this year," he said, promising efforts to ensure the effective implementation and oversight of interest rate policies to keep overall financing costs at a low level.