Central Bank: Continue to implement appropriate loose monetary policy

On February 10, the People’s Bank of China (PBOC) published its 2025 fourth-quarter Monetary Policy Implementation Report for China. The report states the central bank will maintain a moderately loose monetary policy, prioritizing stable economic growth and a reasonable rebound in prices. Given domestic and global economic/financial conditions and market operations, it stresses the need to control the intensity, pace, and timing of policy rollout. It also underscores flexible, effective use of tools like reserve requirement ratio (RRR) cuts and interest rate reductions to keep liquidity reasonably ample and social financing conditions relatively loose. The objectives are to guide reasonable growth in financial aggregates, ensure balanced credit distribution, and align the growth of social financing and money supply with economic growth and the overall price level target. (Source: Golden Ten)