Economy Jul 01

PBoC lowers refinancing, rediscount rates

New rates put in place to target agricultural sector and small businesses  

PBoC lowers refinancing, rediscount rates

(ATF) China’s central bank, the People's Bank of China (PBOC), has decided to lower the refinancing and rediscount interest rates.

With effect from Wednesday, the rediscount rate will be lowered 0.25 percentage point to 2%. That will leave the rates on three-month, six-month and one-year reloans supporting agriculture, and small firms at 1.95 percent, 2.15 percent and 2.25 percent.

The adjustment was the second this year. In May, the PBoC cut the relending rates to 2.5 percent from 2.75 percent.

In the meantime, the central bank will lower the interest rates of financial stability refinancing loans by 0.5 percentage points to 1.75%.