PBOC Cuts Rates on Relending Facilities for Small Businesses and Rural Sectors

China’s central bank has lowered interest rates on two relending facilities by 25 basis points as an incentive to encourage commercial banks to lend more and at lower interest rates to small businesses and rural sectors.

Starting Tuesday, the one-year relending rate under the programs was lowered to 2%, the six-month rate to 1.9% and the three-month rate to 1.7%, according to data released by the People’s Bank of China (PBOC).