China’s central bank, the People’s Bank of China (PBOC), has laid out its monetary and financial priorities for 2025 following a significant two-day meeting that concluded on Saturday. The PBOC emphasized the importance of expanding domestic demand, stabilizing expectations, and stimulating vitality to ensure the sustained improvement of the Chinese economy.
The central bank announced its plan to implement a moderately loose monetary policy in 2025. This approach aims to create a favorable monetary and financial environment conducive to stable economic growth. The PBOC highlighted its commitment to forestalling and defusing financial risks in key areas, further deepening financial reform, and promoting high-standard opening up.
In its policy outline, the PBOC indicated that it would leverage a mix of monetary policy tools. This includes adjusting the reserve requirement ratio and interest rates when appropriate, taking into account domestic and international economic and financial conditions as well as the operation of financial markets.
Maintaining sufficient liquidity and steadily increasing financial supply are also among the central bank’s priorities. The PBOC aims to ensure that the growth in social financing and money supply aligns with the targets set for economic growth and overall price levels.
Emphasizing efficiency, the central bank underlined the importance of putting existing financial resources to good use. It seeks to improve the efficiency in the use of funds to support economic development effectively.
Additionally, the PBOC stated its intention to keep the exchange rate of the yuan basically stable at an adaptive and balanced level. By doing so, it aims to forestall risks associated with exchange rate overshooting, thus maintaining stability in foreign exchange markets.
Reference(s):
cgtn.com
