China reduced the one-year policy loan rate to a record low, signaling intensified stimulus efforts as economic growth loses traction. The benchmark rate, which guides lending costs to banks, reflects policymakers' response to mounting pressures on growth momentum.

People familiar with the matter confirmed the rate decline, though specific figures weren't disclosed. This move represents a clear shift toward more aggressive monetary accommodation, as Beijing attempts to shore up credit flow and support businesses facing tighter financing conditions.

The policy rate adjustment affects how much banks pay to borrow from the central bank, ultimately influencing mortgage rates, business loans, and broader credit conditions across the economy. By lowering borrowing costs, authorities aim to encourage lending and stimulate investment activity.

This rate cut demonstrates growing concern about economic slowdown risks and suggests further policy easing may follow if momentum continues to deteriorate.