China May Lower Policy Rate, RRR Once This Year in 2Q -- Market Talk

Dow Jones01-16

0211 GMT - China will likely to see one round of policy rate and reserve requirement ratio cuts in 2026, likely to take place in 2Q, says Nomura analysts in a note. The People's Bank of China Governor Zou Lan announced Thursday that the central bank will lower interest rates on all structural monetary facilities by 25 bps. As a result, the interest rate on the PSL will be lowered to 1.75%. All re-lending rates will also be cut by 25 bps to 1.25%, they say. The move is largely in line with Nomura's expectations. The PBOC should steer clear of high-profile monetary easing measures to avoid fuelling the already buoyant stock market, they add. Thursday's actions represent the right approach to address the rapidly deteriorating domestic economic momentum and shows that Beijing is becoming increasingly concerned about domestic growth dynamics.(jiahui.huang@wsj.com; @ivy_jiahuihuang)

 

(END) Dow Jones Newswires

January 15, 2026 21:11 ET (02:11 GMT)

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