This week, the People's Bank of China (PBOC) outlined its monetary policy roadmap after the monetary policy committee’s fourth quarterly meeting, pledging to maintain ample liquidity and align financing growth with economic and price targets.
By keeping liquidity abundant, the PBOC aims to ensure that aggregate financing for the real economy and money supply growth move in step with broader economic expansion and controlled inflation. This strategy is designed to lower overall financing costs for companies and households.
The PBOC said it will strengthen the guiding role of its policy rates, refine the market-based interest rate formation and transmission mechanism, and leverage self-regulatory pricing for market rates. Enhanced implementation and supervision of interest rate policies are also on the agenda.
On the foreign exchange front, the central bank plans to boost the resilience of the FX market by stabilizing expectations, guarding against exchange-rate overshooting, and keeping the RMB exchange rate basically stable, adaptive, and balanced.
Looking ahead, the PBOC will roll out structural monetary policy tools to channel financial support toward expanding domestic demand, sci-tech innovation, and small and medium-sized enterprises.
For global businesses and investors, these measures signal a supportive environment in the Chinese mainland that could drive stronger domestic consumption and foster a more predictable currency backdrop. Entrepreneurs and tech start-ups may see more accessible funding, while exporters and digital nomads can anticipate smoother currency dynamics.
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China's central bank will maintain ample liquidity to align growth
cgtn.com
