PBOC’s Key Bank Loan Rate Falls to Record Low Bolstering Growth

China has let the interest rate on a one-year policy loan to banks drop to a record low, according to people familiar with the situation, lowering funding costs so as to revive economic growth.

The People’s Bank of China charged some lenders on its medium-term lending facility, or MLF, at as low as 1.5% in January, down from 1.55% in December, said the people who requested anonymity discussing private matters. This compares with its last official rate of 2% a year ago, before the PBOC stopped publishing the figure after unveiling a new method for pricing the loan.