PBOC: Will Continue To Implement Appropriately Loose Monetary Policy - To Use RRR Cut, Interest Rate Cut Tools Flexibly In 2026 | Metals Mine

  • PBOC: Will Continue To Implement Appropriately Loose Monetary Policy - To Use RRR Cut, Interest Rate Cut Tools Flexibly In 2026

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sculpordwarf
Jan 6, 2026 4:44am
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It means that banks have to hold less money to 'secure' loans, meaning that they can lend more money out, in the hopes that it will stimulate the economy. It is very similar to what we have here. We now have 'interest on reserve balance', we used to have close to the same thing prior to the pandemic. But basically if you allow the banks to lend more than they have on hand, although it can be risky, more companies and people can borrow more money, stimulating (at least in idea) the economy.
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Nordling
Jan 6, 2026 5:17am
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Quoting Ferna
Translation please?
China will keep yuan cheap on purpose. You are welcome
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