China is poised to implement monetary easing measures in 2025 to bolster economic stability, according to a Thursday announcement by Pan Gongsheng, governor of the People's Bank of China. Speaking at a press conference during the third session of the 14th National People's Congress, Pan outlined plans to cut reserve requirement ratios (RRRs) and interest rates, citing domestic and global economic conditions as key determinants.
Room for Adjustment
China's current average RRR for financial institutions stands at 6.6%, with Pan emphasizing that further reductions remain possible. The central bank will leverage multiple tools—including open market operations, medium-term lending facilities, and policy rates—to maintain market liquidity and reduce borrowing costs for businesses and consumers.
Targeted Support for Key Sectors
New structural monetary policies are also under consideration to spur investment in sci-tech innovation, strengthen consumer spending, and stabilize foreign trade. These measures aim to align financial markets with national economic priorities while addressing global uncertainties.
Strategic Liquidity Management
The central bank reiterated its commitment to balancing growth and risk mitigation, focusing on lowering overall social financing costs. Analysts suggest these moves could enhance China's appeal to overseas investors while supporting long-term economic reform goals.
