Xuanchang Neng: The People's Bank of China continues to promote the transformation of the monetary policy framework, paying more attention to the role of price-based control tools such as interest rates.

From May 9th to 12th, 2025, Deputy Governor of the People's Bank of China, Xuan Changneng, attended the annual economic conference of the Central Bank of Iceland in Reykjavik and the Governors' Meeting of the Bank for International Settlements (BIS) in Basel, Switzerland. Xuan Changneng delivered a keynote speech on the evolution of China's monetary policy framework at the annual economic conference of the Central Bank of Iceland. He pointed out that in recent years, there has been profound transformation in China's economic and financial structure, and the People's Bank of China has been continuously promoting the transformation of the monetary policy framework. Firstly, the emphasis is on de-emphasizing quantity targets and focusing more on the role of price-based control tools such as interest rates. Secondly, further improvement of market-based interest rate control mechanisms, with the overnight reverse repurchase operation rate of the open market as the main policy rate. The original text can be found at the following URL: GMTEight Editor: Li Fo.