First structural rate cuts policy of 2026 takes effect

The People's Bank of China (PBOC) has decided to cut interest rates for relending and rediscount facilities and the policy took effect on Monday.

In a strategic move to enhance financial support for major initiatives, key sectors, and vulnerable areas, the PBOC has lowered the rates by 0.25 percentage points.

After the reduction, the interest rates for relending aimed at supporting agriculture and small businesses are as follows: 0.95 percent for 3-month loans, 1.15 percent for 6-month loans, and 1.25 percent for 1-year loans. Additionally, the rediscount rate has been set at 1.5 percent, the mortgage supplementary loan rate stands at 1.75 percent, and the interest rate for special structural monetary policy tools is now 1.25 percent.

First structural rate cuts policy of 2026 takes effect

Gold and silver futures prices hit new record highs during Asian trading hours on Monday.

The price of the most active gold futures contract on the New York Mercantile Exchange once touched 4,698 U.S. dollars per ounce, while the price of the most active silver futures contract once broke through 94 U.S. dollars per ounce.

As of 10:30 Beijing time (02:30 GMT) Monday, the price of the most active gold futures contract on the New York Mercantile Exchange was 4,667.6 U.S. dollars per ounce, up 1.57 percent on the day, while the price of the most active silver futures contract was 93.245 U.S. dollars per ounce, up 5.32 percent on the day.

Gold, silver prices hit new record highs