Central Bank: Based on domestic and international economic and financial conditions and the operation of the financial market, it will choose the right time to cut the reserve requirement ratio and interest rates

According to the Zhitong Finance APP, on March 13, the Party Committee of the People's Bank of China held an expanded meeting. The meeting pointed out the need to implement a moderately loose monetary policy effectively. It emphasized balancing short-term and long-term goals, stabilizing growth while preventing risks, achieving internal and external equilibrium, and supporting the real economy while maintaining the health of the banking system. Based on domestic and international economic and financial conditions and the operation of financial markets, the meeting called for timely reductions in reserve requirements and interest rates, utilizing various monetary policy tools such as open market operations to maintain ample liquidity, ensuring that the growth of social financing and money supply aligns with economic growth and overall price level expectations. It also aimed to further smooth the transmission channels of monetary policy, improve the formation and transmission mechanisms of interest rates, and promote a decrease in the comprehensive financing costs for society. Strengthening communication with the market and enhancing policy transparency were also highlighted. The meeting insisted on the decisive role of the market in exchange rate formation, reinforced expectation guidance, and maintained the basic stability of the RMB exchange rate at a reasonable and balanced level.

Furthermore, it called for a comprehensive deepening of financial reform and opening up. The meeting urged the acceleration of the improvement of the central bank system, the establishment of a dual-pillar regulatory framework for monetary policy and macro-prudential policy, the optimization of financial markets, financial services, and financial market infrastructure, and the enhancement of financial rule of law. It emphasized the orderly advancement of institutional opening in the financial services industry and financial markets, and the steady and solid promotion of RMB internationalization. Active participation in international financial governance and cooperation, promoting global macro policy coordination, and the formulation of international financial rules were also stressed. The meeting insisted on coordinating development and security, resolutely safeguarding national financial security.

The original text is as follows:

The Party Committee of the People's Bank of China holds an expanded meeting to convey and study the important speech spirit of General Secretary Xi Jinping and the spirit of the National Two Sessions

On March 13, the Party Committee of the People's Bank of China held an expanded meeting to deeply study the important speech spirit of General Secretary Xi Jinping during the National Two Sessions and the spirit of the National Two Sessions, and to research and deploy implementation measures. The meeting was presided over by Pan Gongsheng, Secretary of the Party Committee and Governor of the People's Bank of China, and attended by all committee members.

The meeting noted that the 2025 National Two Sessions is a very important meeting held at a critical juncture for concluding the 14th Five-Year Plan and planning the 15th Five-Year Plan. During the meeting, General Secretary Xi Jinping repeatedly visited groups to discuss the promotion of Chinese-style modernization with representatives and committee members, making profound elaborations on major issues such as promoting technological and industrial innovation, developing new quality productive forces, comprehensively deepening reforms, continuously optimizing the business environment, building a strong education nation, and advancing military modernization, which are highly political, ideological, strategic, and guiding, providing fundamental guidance for our work.

The meeting pointed out that in the past year, faced with complex and severe internal and external situations, the Party Central Committee with Comrade Xi Jinping at its core has navigated and made decisive decisions, the State Council has coordinated deployment and implementation, and the people across the country have overcome difficulties, successfully completing the main goals and tasks of economic and social development for the year. The 2025 government work report scientifically proposed the overall requirements, main expected goals, and macro policy orientation for this year's economic and social development, and comprehensively deployed this year's key work tasks. The People's Bank of China must earnestly implement the important speech spirit of General Secretary Xi Jinping and the deployment of the government work report, focus on goal orientation, grasp policy direction, emphasize timing and intensity, and strengthen systematic thinking to create a favorable monetary and financial environment for promoting sustained economic recovery and improvement First, implement a moderately loose monetary policy. Balance the relationship between short-term and long-term, stable growth and risk prevention, internal balance and external balance, supporting the real economy and maintaining the health of the banking system. Based on domestic and international economic and financial conditions and the operation of financial markets, timely reduce the reserve requirement ratio and interest rates, comprehensively use various monetary policy tools such as open market operations, and maintain ample liquidity to ensure that the scale of social financing and the growth of money supply align with economic growth and overall price stability expectations. Further smooth the transmission channels of monetary policy, improve the interest rate formation and transmission mechanism, and promote a decrease in the comprehensive financing costs for society. Strengthen communication with the market and enhance policy transparency. Adhere to the decisive role of the market in the formation of exchange rates, strengthen expectation guidance, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

Second, strengthen financial services for major strategies, key areas, and weak links. Scientifically utilize various structural monetary policy tools to guide financial institutions to increase support for technology finance, green finance, inclusive small and micro finance, and pension finance. Research and create new structural monetary policy tools, focusing on supporting investment and financing in the field of technological innovation, promoting consumption, and stabilizing foreign trade. Strengthen policy coordination and transmission, support economic structural adjustment, transformation and upgrading, and the conversion of old and new driving forces, better leveraging the synergistic effects of monetary policy and fiscal interest subsidies, risk compensation, and other measures. Enhance the service capabilities of financial institutions, enrich financial products, improve internal institutional arrangements, strengthen information technology support, and optimize the allocation of financial resources.

Third, prudently and effectively prevent and resolve financial risks in key areas. Explore and expand macro-prudential and financial stability functions to maintain stability in financial markets. Support the stable development of capital markets. Continue to effectively address the debt risk resolution of financing platform support. Adhere to market-oriented and rule-of-law principles, and actively support the risk disposal of small and medium-sized financial institutions. Improve macro-prudential management of real estate finance and establish a sound real estate financial system.

Fourth, further comprehensively deepen financial reform and opening up. Accelerate the improvement of the central bank system, establish a dual-pillar regulatory framework for monetary policy and macro-prudential policy, optimize the financial market, financial services, and financial market infrastructure system, and improve financial rule of law. Gradually promote the institutional opening of the financial services industry and financial markets, and steadily advance the internationalization of the RMB. Actively participate in international financial governance and cooperation, promote global macro policy coordination and the formulation of international financial rules. Adhere to the overall development and security, and resolutely safeguard national financial security.

Fifth, deepen the comprehensive and strict governance of the Party. Strictly and practically implement the rectification of central inspections and economic responsibility audits, and strengthen the application of rectification results. Solidly carry out in-depth education on the spirit of the Central Eight Regulations, promote the normalization and long-term effectiveness of Party discipline education, and maintain a connection between rectifying the style and discipline and combating corruption, creating a clean and upright political ecology.

The meeting emphasized that the People's Bank of China should improve the working mechanism for handling suggestions and proposals, deepen communication and consultation, build consensus, further improve the quality of handling suggestions and proposals, and effectively promote the implementation of various financial policies for the people.

Main responsible comrades from relevant departments of the People's Bank of China and comrades from the stationed disciplinary inspection and supervision teams attended the meeting.

This article is compiled from the official website of the "People's Bank of China," edited by Jiang Yuanhua of Zhitong Finance.