A moderately loose monetary policy will be implemented
Posted: Tue Feb 11, 2025 5:09 am
Xuan Changneng said that in accordance with the central government's requirement to "implement more proactive and effective macroeconomic policies", the People's Bank of China will implement a moderately loose monetary policy this year.
In recent years, the prudent monetary policy has placed more emphasis on requirements such as forceful, effective, precise and flexible, and has tended to be more relaxed in its control range. It will also continue to increase counter-cyclical adjustments based on the economic performance in the middle of the year. Since the end of 2019, it has continued to lower the reserve requirement ratio and interest rates. The cumulative effect has made the social financing environment relatively loose.
In the next stage, macroeconomic policies will further strengthen countercyclical adjustments. Based on the domestic and international economic and financial situation and the operation of the financial markets, the intensity and rhythm of policies will be adjusted and optimized to support the realization of the annual economic and social development goals.
Comprehensively use various monetary policy tools such as british student data interest rates and reserve requirement ratios to maintain ample liquidity and ensure a relaxed social financing environment.
Strengthen the implementation of interest rate policies and further reduce the overall financing costs of society while maintaining healthy operations of the financial industry. Make scientific use of structural monetary policy tools and give full play to the dual functions of monetary policy tools in terms of both total volume and structure.
Strengthening the resilience of foreign exchange markets
Xuan Changneng pointed out that the international situation in 2024 is complex and changeable, and multiple factors have driven the US dollar index to fluctuate and strengthen. China's foreign exchange market has shown very good resilience. The RMB exchange rate has generally shown a two-way fluctuation trend and has remained basically stable under the complex situation. It has performed relatively well among major currencies, creating favorable conditions for China to independently implement monetary policy and has played a positive role in stabilizing the economy and foreign trade.
In recent years, the prudent monetary policy has placed more emphasis on requirements such as forceful, effective, precise and flexible, and has tended to be more relaxed in its control range. It will also continue to increase counter-cyclical adjustments based on the economic performance in the middle of the year. Since the end of 2019, it has continued to lower the reserve requirement ratio and interest rates. The cumulative effect has made the social financing environment relatively loose.
In the next stage, macroeconomic policies will further strengthen countercyclical adjustments. Based on the domestic and international economic and financial situation and the operation of the financial markets, the intensity and rhythm of policies will be adjusted and optimized to support the realization of the annual economic and social development goals.
Comprehensively use various monetary policy tools such as british student data interest rates and reserve requirement ratios to maintain ample liquidity and ensure a relaxed social financing environment.
Strengthen the implementation of interest rate policies and further reduce the overall financing costs of society while maintaining healthy operations of the financial industry. Make scientific use of structural monetary policy tools and give full play to the dual functions of monetary policy tools in terms of both total volume and structure.
Strengthening the resilience of foreign exchange markets
Xuan Changneng pointed out that the international situation in 2024 is complex and changeable, and multiple factors have driven the US dollar index to fluctuate and strengthen. China's foreign exchange market has shown very good resilience. The RMB exchange rate has generally shown a two-way fluctuation trend and has remained basically stable under the complex situation. It has performed relatively well among major currencies, creating favorable conditions for China to independently implement monetary policy and has played a positive role in stabilizing the economy and foreign trade.