China’s central bank is taking decisive action to boost the economy in 2024, and experts say these measures are making a real impact. The People’s Bank of China (PBOC) has cut the reserve requirement ratio twice this year, injecting about 2 trillion yuan ($274 billion) into the financial system. This move gives banks more funds to lend to businesses and individuals.
In July and September, the PBOC lowered key interest rates, making borrowing cheaper. Dong Ximiao, chief researcher at Merchants Union Consumer Finance, mentioned, “These measures have effectively lowered interest rates, reduced borrowing costs for businesses and households, boosted market confidence, and stimulated effective demand.”
The central bank also introduced special lending facilities worth billions to support scientific innovation, affordable housing, agriculture, and small businesses. These targeted efforts aim to drive high-quality development in critical sectors like green energy and technology.
Looking ahead, China’s leaders have adjusted their monetary policy to a “moderately loose” stance for 2025, signaling a strong commitment to economic recovery. Zou Lan, director of the PBOC’s monetary policy department, stated, “This policy will not only maintain strong support for economic growth but also enhance investor confidence, stimulate consumption, and foster a virtuous cycle of economic activity.”
Reference(s):
China's monetary policy boosts 2024 economic growth: Experts
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