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Deputy Governor of the Central Bank: There is still room for reserve requirement ratio and interest rate cuts this year
Summary: According to data from Jinshi, Deputy Governor and spokesperson of the People's Bank of China, Zou Lan, stated at a press conference on January 15th that there is still room for reserve requirement ratio and interest rate cuts this year. Currently, the average statutory reserve requirement ratio for financial institutions is 6.3%, indicating that there ...
According to data from Jinshi, Deputy Governor and spokesperson of the People's Bank of China, Zou Lan, stated at a press conference on January 15th that there is still room for reserve requirement ratio and interest rate cuts this year. Currently, the average statutory reserve requirement ratio for financial institutions is 6.3%, indicating that there is still room for cuts. In terms of policy rates, external constraints show that the RMB exchange rate is relatively stable and the US dollar is in a rate-cutting cycle, which does not pose a strong constraint. Internally, since 2025, bank net interest margins have shown signs of stabilization, and in 2026, there will be a large scale of 3-year and 5-year long-term deposits maturing. This round of adjustments to various structural monetary policy tools rates will help reduce bank interest costs, stabilize net interest margins, and create room for interest rate cuts.
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Link: Deputy Governor of the Central Bank: There is still room for reserve requirement ratio and interest rate cuts this year [Copy]
