The Monetary Policy Committee of the People's Bank of China held its regular meeting for the first quarter of 2025

Wallstreetcn
2025.03.21 10:46
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The Monetary Policy Committee of the People's Bank of China held its regular meeting for the first quarter of 2025 to discuss the main direction of future monetary policy. It suggested strengthening policy regulation, appropriately lowering the reserve requirement ratio and interest rates, maintaining ample liquidity, and encouraging financial institutions to increase credit supply to ensure that social financing matches economic growth. At the same time, it emphasized guiding policy interest rates, improving the interest rate transmission mechanism, reducing financing costs, paying attention to changes in the bond market and long-term yields, enhancing the resilience of the foreign exchange market, and maintaining the stability of the RMB exchange rate

The meeting studied the main ideas for the next phase of monetary policy, suggesting an increase in the intensity of monetary policy regulation, enhancing the foresight, targeting, and effectiveness of monetary policy regulation, and appropriately lowering the reserve requirement ratio and interest rates based on domestic and international economic and financial conditions and the operation of financial markets. Maintain ample liquidity, guide financial institutions to increase the intensity of monetary credit issuance, and ensure that the growth of social financing scale and money supply aligns with economic growth and the expected targets for overall price levels. Strengthen the guidance of central bank policy interest rates, improve the transmission mechanism for market-oriented interest rate formation, leverage the self-discipline mechanism of market interest rate pricing, and enhance the implementation and supervision of interest rate policies. Promote a reduction in the comprehensive financing costs for society. Observe and assess the operation of the bond market from a macro-prudential perspective, paying attention to changes in long-term yields. Smooth the transmission mechanism of monetary policy, improve the efficiency of fund utilization, and prevent idle capital turnover. Enhance the resilience of the foreign exchange market, stabilize market expectations, strengthen market management, resolutely correct pro-cyclical behaviors in the market, decisively address actions that disrupt market order, firmly prevent risks of excessive exchange rate adjustments, and maintain basic stability of the RMB exchange rate at a reasonable and balanced level.

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