China’s central bank, the People’s Bank of China (PBOC), has unveiled its monetary and financial priorities for 2025 after concluding a significant two-day meeting on Saturday. The focus is on expanding domestic demand, stabilizing expectations, and stimulating economic vitality to ensure sustained improvement in the country’s economy.
The PBOC announced plans to implement a moderately loose monetary policy in 2025. This approach aims to create a supportive monetary and financial environment conducive to stable economic growth. Key measures include leveraging a mix of monetary policy tools to adjust the reserve requirement ratio and interest rates when appropriate, responding to domestic and international economic conditions and financial market operations.
Emphasizing the importance of liquidity, the central bank intends to maintain sufficient liquidity levels and steadily increase financial supply. This strategy ensures that the growth in social financing and money supply aligns with targets for economic growth and overall price stability.
Moreover, the PBOC highlighted the need to optimize the use of existing financial resources, aiming to improve efficiency in fund utilization. In terms of currency stability, the central bank is committed to keeping the yuan’s exchange rate basically stable at an adaptive and balanced level, and to forestall any risks of exchange rate overshooting.
The PBOC also indicated its dedication to forestalling and defusing financial risks in key areas and to further deepen financial reform and high-standard opening up. These efforts are geared towards ensuring a resilient financial system that can support China’s economic objectives in the coming years.
Reference(s):
cgtn.com
