Logo 16 Jan 2026

PBoC says there’s space for interest rate, RRR cuts in 2026

Subscribe to keep reading.

Trivium Markets keeps you briefed on the latest developments in China markets policy.

Try it free

Already a subscriber? Log in.

China’s central bank (PBoC) is leaving the door open to interest rate and reserve requirement ratio (RRR) cuts this year. On January 15, PBoC Deputy Governor Zou Lan said the main constraint on rate cuts is banks’ net interest margins (NIMs), which have stabilized at 1.42% over the last two quarters...



More recent developments

Logo April 3, 2026
TCL Zhonghuan completes solar industry’s first major capacity acquisition

On March 30, solar wafer giant TCL Zhonghuan announced it had completed its planned acquisition of struggling module manufacturer DAS Solar. TCL now owns 59.14% of DAS, having spent RMB 1.26 buying a mix of newly issued shares and existing… Read More »

Logo April 2, 2026
China to introduce a new tax to improve local finances

China is laying the groundwork for a new local tax source. On March 30, the finance ministry (MoF) announced it will formulate a draft Local Surtax Law – combining the urban maintenance and construction tax, education surcharge, and local education… Read More »

Logo April 2, 2026
Banks’ NIM pessimism makes 2026 rate cut unlikely

A rate cut this year is less likely than we previously thought. Some context: On January 15, central bank (PBoC) Deputy Governor Zou Lan said that banks’ net interest margins (NIMs) – the main constraint on rate cuts – will… Read More »