To implement the spirit of the Central Politburo meeting and the deployments of the State Council executive meeting, and to carry out an appropriately accommodative monetary policy, the People's Bank of China, while fully leveraging the effectiveness of existing policies, has decided to further adjust and refine several monetary policy tools. This aims to create an appropriate monetary and financial environment for stable economic growth, high-quality development, and the stable operation of financial markets, promote sustained and improving economic development, and support a good start for the "15th Five-Year Plan."

The first measure is a 0.25 percentage point cut in the interest rate of the Pledged Supplemental Lending (PSL). The one-year PSL rate will be lowered from 1.75% to 1.5%, better incentivizing policy banks to support the real economy and serve national strategies.

The second measure is to expand the areas supported by PSL. 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 PSL support areas. This will guide policy banks to increase financial support for the construction of the "six networks," help expand effective investment, and tap deeper into domestic demand potential.

The third measure is to increase the quota of the relending facility for technological innovation and technical upgrading by 200 billion yuan, and to uniformly raise the support ratio of this relending facility from 60% to 100%. After the increase, the quota for the relending facility for technological innovation and technical upgrading will rise from 1.2 trillion yuan to 1.4 trillion yuan. The higher support ratio 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.

The fourth measure is to increase the quota of relending facilities for agriculture and small businesses by 500 billion yuan, of which 300 billion yuan will be added to the relending quota for private enterprises. After the increase, the quota for relending and rediscounting for agriculture and small businesses will rise from 4.35 trillion yuan to 4.85 trillion yuan, with the relending quota for private enterprises increasing from 1 trillion yuan to 1.3 trillion yuan. This will further incentivize local legal-person banks to increase credit support for agriculture-related and small and micro enterprises, especially small, medium, and micro private enterprises.

The People's Bank of China will continue to comprehensively use various monetary policy tools based on macroeconomic conditions, price trends, and macro-control needs, maintain ample liquidity, guide and regulate interest rate levels well, and serve the high-quality development of the real economy.