People's Bank of China

China to keep benchmark lending rates steady after strong GDP data

Its economy is weathering the Iran war better than others, prompting banks to walk back calls for rate cuts

China’s interest-rate swap market is also flashing signals of reduced expectations for further policy easing by the People’s Bank of China.

Chinese bonds near inflection point as inflation outlook shifts

The brighter outlook for the world’s No 2 economy has prompted global banks to withdraw or scale back forecasts for a PBOC rate cut this year

The People’s Bank of China has stressed that the market should read its policy signals from the level of interest rates instead of the amount of liquidity it injects.

China drains cash from economy in rare move during oil shock

The central bank withdraws a total of 890 billion yuan worth of liquidity via short-term open market operations in March

Despite diminishing expectations for an imminent rate cut, the PBOC is unlikely to create or tolerate a cash crunch in the financial system.

China rate markets signal cooling bets on deflation, PBOC easing

Investors and businesses use the swaps to hedge their interest rate exposure by exchanging a fixed-rate income stream for floating rates

The PBOC has set the renminbi fixing at 6.89 yuan (S$1.28) for each US dollar, its strongest level since 2023.

PBOC employs volatile renminbi fixing to manage Iran war fallout

The move signals that China is encouraging two-way fluctuations rather than backing a single direction

Despite recent declines, gold has gained over the past few weeks, clawing its way back above US$5,000 an ounce.

China’s PBOC extends gold buying as Middle East tension simmers

Some countries have also sold gold recently, but buying still outweighs sell-offs

The bank will continue to keep the yuan basically stable and strengthen guidance for foreign exchange market expectations.

PBOC vows to support yuan stability as global volatility rises

China will not seek to gain an edge in trade by depreciating the yuan

The renminbi strengthened 4.4% in 2025 in its biggest annual gain since 2020.
EXPLAINER

What can China do to slow down its rising currency?

The renminbi has firmed about 2% so far in 2026

The onshore renminbi advanced for a 10th straight session to hit 6.8310 per US dollar, its strongest level since April 2023.

Renminbi extends advance to mark longest winning streak since 2010

Exporters are seen stepping up foreign-currency settlements, helping the currency’s strength

The People’s Bank of China pledges to guide short-term money market rates to trend more closely around the policy rate in a smooth manner.

PBOC’s rising focus on overnight rate spurs talk of policy shift

This change towards meticulous liquidity management helps the central bank align more with the US Federal Reserve