China's central bank cuts one-year PSL rate from 1.75% to 1.5%

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China's central bank cuts one-year PSL rate from 1.75% to 1.5%

6 October 2026

The People's Bank of China announced enhanced financial support for the economy on Tuesday, 29 September 2026.
The one-year Pledged Supplementary Lending (PSL) rate was cut from 1.75% to 1.5%.
PSL support now extends to the 'six networks': water networks, new-type power grids, computing power networks, communication networks, urban underground pipelines and logistics networks.
The sci-tech innovation relending quota rose by 200 billion yuan, from 1.2 trillion to 1.4 trillion yuan.
The private enterprise relending facility quota rose from 1 trillion to 1.3 trillion yuan.
From 1 October 2026, interest subsidies for housing loans will apply for one year.

One-year PSL rate: 1.75% to 1.5% Sci-tech relending quota: 1.2 trillion to 1.4 trillion yuan Private enterprise relending quota: 1 trillion to 1.3 trillion yuan

Why it matters for exams: Central-bank rate tools and relending quotas are staple economy questions, and China's policy moves are tracked in international affairs.

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6 October 2026 Source: Government of China (english.www.gov.cn)

In plain words

PSL Pledged Supplementary Lending — A central-bank loan facility for policy banks, set at a stated interest rate.

Relending Relending quota — Central-bank funds lent on to banks for use in targeted sectors.