To better leverage the incentive role of structural monetary policy instruments, and encourage financial institutions to step up support for major strategies, key sectors, and weak links, the People’s Bank of China (PBOC) has decided to cut the interest rates on central bank lending by 0.25 percentage points, which will be effective from May 7, 2025. After the adjustment, the interest rates on 3-month, 6-month, and 1-year central bank lending for rural development and micro and small businesses (MSBs) will register 1.2 percent, 1.4 percent, and 1.5 percent, respectively. The interest rates on pledged supplementary lending (PSL) and on specialized structural monetary policy instruments will be 2.0 percent and 1.5 percent, respectively, after the adjustment.