China’s central bank is keeping credit conditions supportive while leaving its next rate move unscheduled, as available year-to-date figures show exports growing faster than retail sales across different reporting periods.
The People’s Bank of China (PBOC) said in its third-quarter report, released Nov. 11, that it would maintain ample liquidity and relatively accommodative financing conditions. It said the force and timing of policy-tool use would be calibrated to economic and financial conditions. The report also called for broader support for domestic demand, technology innovation, small businesses and key infrastructure.
China’s economy grew 4.5% year over year in the third quarter and 4.6% in the first nine months, the National Bureau of Statistics (NBS) reported. The January-through-September figure is within the government’s 4.5% to 5% growth target for 2026, but does not represent a full-year result.
Goods exports rose 17.6% year over year in yuan terms from January through October, General Administration of Customs data showed. NBS figures showed retail sales of consumer goods increased 1.1% in January through September.
The average rate on newly issued corporate loans was just below 3% in September, while the rate on new personal housing loans was about 3.1%, according to the PBOC. The report said loan pricing should draw on a wider set of benchmarks beyond the Loan Prime Rate.
A Dow Jones report carried by Hindustan Times said Citic Securities analysts viewed the latest easing round as probably over. Citi economists, according to the same report, said further policy-rate cuts should follow deposit-rate reductions to protect banks’ net interest margins. The report also said the PBOC warned of risks from excessively low interest rates.
The report set no date for another rate decision, leaving future adjustments tied to changing economic and financial conditions.
