What changed
The People’s Bank of China published its 2026 third-quarter monetary-policy implementation report on November 11, confirming that it will maintain a moderately accommodative policy. The report says banks have ample liquidity, with the DR001 overnight rate averaging 1.34% in the first three quarters, while September-end aggregate financing and M2 grew 7.1% and 7.2% year on year.
Why it matters
For Chinese companies, borrowing remains relatively cheap: new corporate-loan rates in September were just below 3.0%, about 0.2 percentage points lower than a year earlier. New personal mortgage rates were about 3.1%, broadly unchanged from the same period last year.
The policy is also steering credit toward selected sectors. At September-end, technology loans grew 12.0% year on year, green loans 13.0%, elderly-care loans 16.2%, digital-economy loans 15.7% and inclusive loans 6.5%. Those figures show where the banking system is being encouraged to put money, even as overall credit growth stays measured.
The important signal is continuity with room to adjust. The central bank says it will use and adjust policy tools according to domestic and global economic conditions, while keeping liquidity ample and financing conditions relatively easy. That is not a promise of a new rate cut or reserve-requirement reduction; the timing and scale of any future move remain unspecified.
The currency has also strengthened: the renminbi closed at 6.7053 per dollar at the end of September, up 4.1% from the end of 2025. For now, the policy mix is designed to keep support flowing to the economy without announcing a fresh burst of stimulus.
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