Fourth quarter of 2025 China Monetary Policy Implementation Report

In 2025, the year of the conclusion of the "14th Five-Year Plan", under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, the national economy continued to develop steadily and make progress, and the main goals of economic and social development were successfully achieved. The GDP grew by 5% compared to the previous year. The People's Bank of China adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, resolutely implemented the decisions and deployments of the Party Central Committee and the State Council, implemented a moderately loose monetary policy, and launched a package of monetary and financial policy measures on the basis of implementing the existing monetary policy. It strengthened countercyclical adjustment, effectively supported stable growth of the real economy and smooth operation of the financial markets. First, maintain reasonable growth of monetary credit. Comprehensive use of various monetary policy tools such as reserve requirements and open market operations to maintain liquidity. Guide financial institutions to strengthen project reserves and credit lending, fully meet the effective credit needs of the real economy. Second, promote a downward trend in the overall social financing cost. Lower policy interest rates, structural monetary policy tool rates, and personal housing provident fund loan rates to effectively support lowering the overall social financing costs. Strengthen implementation and supervision of monetary policy, improve rate self-discipline management. Third, increase support for major strategies, key areas, and weak links. Enrich and improve the system of structural monetary policy tools, adjust and optimize credit structure, and support the implementation of major financial plans. Increase the amount of refinancing for technology innovation and technological transformation, funding for agricultural and small loans, and create risk-sharing tools for consumer and elderly loans, as well as technology innovation bonds. Fourth, maintain the basic stability of the exchange rate. Adhere to the market's decisive role in the formation of exchange rates, make good use of the exchange rate's regulating function on the macroeconomy and international payments, implement comprehensive policies, and maintain the basic stability of the RMB exchange rate at a reasonable equilibrium level. Fifth, continue to converge financial risks in key areas. Integrate the establishment of the People's Bank of China's Macro Prudential and Financial Stability Committee, further improve the system of macro-prudential management and financial stability assurance. Optimize two monetary policy tools to support the role of the State Investment Company as a "quasi-sovereign wealth fund". Steadily promote the handling of financial risks in key institutions and key regions.