The People's Bank of China (PBOC) announced on December 24, 2025, that it will maintain ample liquidity to align financing growth with this year's economic objectives, emphasizing stability in monetary policy amid global uncertainties. The central bank's quarterly meeting outlined measures to optimize interest rate mechanisms and reduce real economy financing costs, reinforcing its commitment to balanced growth.
Key priorities include strengthening the market-oriented transmission of policy rates and enhancing oversight of interest rate implementation. The PBOC also pledged to stabilize the RMB exchange rate through adaptive measures, mitigating risks of excessive volatility while supporting cross-border trade efficiency.
Structural tools will prioritize funding for domestic demand expansion, sci-tech innovation, and small-to-medium enterprises (SMEs), reflecting Beijing's focus on high-quality development. Analysts view these steps as critical to sustaining China's post-pandemic recovery momentum through 2025.
