According to its Q2 2025 policy report, the PBoC will sustain ample liquidity, target stable prices, and support economic growth while managing exchange rate flexibility and maintaining market stability.
The People's Bank of China's Q2 2025 Monetary Policy Implementation Report, released on August 15, states it will continue a moderately loose monetary policy with abundant liquidity. The policy aims to align credit and money supply growth with economic and inflation targets, maintain price stability, and manage a floating exchange rate based on market conditions. The PBoC will work to enhance forex market resilience, stabilize expectations, and avoid excessive currency fluctuations. It also plans to balance short- and long-term goals, support the real economy, safeguard the banking system, and stabilize employment, businesses, markets, and expectations to meet annual development objectives and conclude the 14th Five-Year Plan successfully.