China Lets Policy Loan Rate Fall to Record Low to Boost Economy

 

China let the interest rate on a one-year policy loan to banks decline to a record low, according to people familiar with the matter, a sign Beijing is stepping up efforts to support an economy that’s losing momentum.

Some banks borrowed from the People’s Bank of China’s one-year medium-term lending facility, or MLF, at rates as low as 1.45% in May, down from 1.5% in April, said the people, who asked not to be identified discussing private matters. This follows a similar drop of five basis points in January.

https://www.bloomberg.com/news/articles/2026-05-26/china-lets-policy-loan-rate-fall-to-record-low-to-boost-economy