China’s economy slowed to 4.3% GDP growth in Q2 2026 amid weak consumption, a prolonged property downturn, and subdued investment, prompting targeted policy support rather than broad easing. On September 29 the People’s Bank of China lowered its one-year pledged supplementary lending rate by 25 basis points to 1.5% and expanded relending quotas for infrastructure, technology, and small businesses, while introducing mortgage-interest subsidies effective October 1. The Loan Prime Rate has remained unchanged for 16 consecutive months, and the central bank’s third-quarter Monetary Policy Committee statement signaled a steady, moderately accommodative stance with no new broad easing signals. Analysts expect short-term policy rates to hold steady through year-end, with any further moves limited to reserve requirement ratio adjustments possibly deferred into 2027. This backdrop underpins trader consensus favoring no change in benchmark rates by December 31.