China’s central bank announced Tuesday it will cut the reserve requirement ratio and interest rates in 2026 as part of its plan to maintain ample liquidity in the financial system.
The central bank stated it will continue to implement an appropriately loose monetary policy throughout the year, according to a statement published on its website.
As part of its economic strategy, the bank will intensify counter-cyclical and cross-cyclical adjustments while working to expand domestic demand. The statement also outlined plans to prudently defuse financial risks in key areas.
The central bank indicated it will use RRR cuts and rate cuts flexibly as monetary tools. Additionally, it committed to keeping the yuan exchange rate "basically stable at a reasonable and balanced level."
Source: Investing