China’s central bank sets 2025 monetary policy goals
The People’s Bank of China (PBC) outlined on Saturday its key monetary and financial objectives for 2025, focusing on expanding domestic demand, stabilising expectations, and fostering economic vitality to drive sustained growth. The priorities were set during a two-day policy meeting that concluded on Saturday.
The central bank announced plans to adopt a moderately loose monetary policy to support stable economic growth while addressing financial risks and advancing financial reform and global integration.
Key highlights of the PBC’s 2025 strategy include:
- Monetary Tools: Utilising a mix of instruments, including reductions in the reserve requirement ratio and interest rates, based on evolving domestic and international economic conditions.
- Liquidity and Financial Supply: Ensuring adequate liquidity and aligning growth in social financing and money supply with economic growth and price stability targets.
- Exchange Rate Stability: Maintaining the yuan’s exchange rate at an adaptive and balanced level to mitigate risks of excessive fluctuations.
- Efficient Use of Funds: Enhancing the effectiveness of existing financial resources to maximise their impact on economic growth.
The PBC also reaffirmed its commitment to fostering a supportive monetary and financial environment in 2025, balancing reform, stability, and growth as it navigates evolving global and domestic challenges.
Attribution: Xinhua
