The People's Bank of China (PBOC), the central bank of the Chinese mainland, has announced its monetary and financial priorities for 2025 following a two-day meeting that concluded on Saturday. The focus is on expanding domestic demand, stabilizing expectations, and stimulating economic vitality to ensure sustained improvement in the economy.
In its strategy for 2025, the PBOC outlined a moderately loose monetary policy aimed at maintaining a sound monetary and financial environment conducive to stable economic growth. The central bank intends to forestall and diffuse financial risks in key areas, further deepen financial reforms, and advance high-standard opening up.
To achieve these goals, the PBOC plans to leverage a mix of monetary policy tools, including reducing the reserve requirement ratio and adjusting interest rates as appropriate in response to domestic and international economic conditions and financial market operations. This approach is designed to maintain sufficient liquidity and steadily increase financial supply, ensuring that the growth in social financing and money supply aligns with the targets for economic growth and overall price levels.
The meeting also emphasized the importance of optimizing the use of existing financial resources and improving fund efficiency. Additionally, the PBOC will keep the yuan's exchange rate basically stable at an adaptive and balanced level to prevent overshooting risks.
Reference(s):
cgtn.com
