PBOC: Lowers the pledged supplementary lending rate by 0.25 percentage points.

The People's Bank of China adjusts and improves several monetary policy tools, lowering the pledged supplementary lending (PSL) rate by 0.25 percentage points. The one-year pledged supplementary lending rate is reduced from 1.75% to 1.5%, to better incentivize policy banks to support the real economy and serve national strategies. At the same time, the scope of pledged supplementary lending support is expanded. The construction of the "six networks" water networks, new-type power grids, computing power networks, next-generation communication networks, urban underground pipeline networks, and logistics networks will be included in the scope of pledged supplementary lending support, guiding policy banks to increase financial support for the construction of the "six networks," helping expand effective investment and deeply tap the potential of domestic demand. The original text is as follows: The People's Bank of China adjusts and improves several monetary policy tools In order to implement the spirit of the Central Political Bureau meeting and the arrangements of the State Council executive meeting, implement an appropriately loose monetary policy, and on the basis of giving full play to the effectiveness of various existing policies, the People's Bank of China has decided to further adjust and improve several monetary policy tools, to create an appropriate monetary and financial environment for stable economic growth, high-quality development, and the stable operation of financial markets, promote the sustained, innovation-driven, and improving development of the economy, and support a good start for the "15th Five-Year Plan." First, lower the pledged supplementary lending (PSL) rate by 0.25 percentage points. The one-year pledged supplementary lending rate is reduced from 1.75% to 1.5%, to better incentivize policy banks to support the real economy and serve national strategies. Second, expand the scope of pledged supplementary lending support. The construction of the "six networks" water networks, new-type power grids, computing power networks, next-generation communication networks, urban underground pipeline networks, and logistics networks will be included in the scope of pledged supplementary lending support, guiding policy banks to increase financial support for the construction of the "six networks," helping expand effective investment and deeply tap the potential of domestic demand. Third, increase the quota for relending for scientific and technological innovation and technological upgrading by 200 billion yuan, and uniformly raise the support ratio of this relending from 60% to 100%. After the increase, the quota for relending for scientific and technological innovation and technological upgrading will rise from 1.2 trillion yuan to 1.4 trillion yuan, and the support ratio will be higher, which will help guide banks to increase lending to small and medium-sized technology enterprises and better support enterprises in expanding equipment renewal investment in key areas. Fourth, increase the quota for relending for agriculture and small businesses by 500 billion yuan, of which the quota for relending for private enterprises will increase by 300 billion yuan. After the increase, the quota for relending for agriculture and small businesses and rediscounting will rise from 4.35 trillion yuan to 4.85 trillion yuan, of which the quota for relending for private enterprises will increase from 1 trillion yuan to 1.3 trillion yuan, which will further incentivize local legal-person banks to increase credit support for agriculture-related and small and micro enterprises, especially small and medium-sized and micro private enterprises. The People's Bank of China will continue to comprehensively use various monetary policy tools according to macroeconomic conditions, price trends, and the needs of macroeconomic regulation, maintain ample liquidity, guide and regulate interest rate levels well, and serve the high-quality development of the real economy. This article is compiled from the official website of the "People's Bank of China." GMTEight editor: Liu Jiayin.