People’s Bank of China Signals Continued Moderately Eased Policy in Q4 Report

China’s central bank reported 5% GDP growth in 2025 and will sustain moderately loose measures, including trillions in refinancing and stable RMB exchange rates.

65d ago

Summary

In its Q4 2025 monetary policy report, the People’s Bank of China announced 5% GDP growth for the year and confirmed plans to maintain a moderately eased stance. The bank will keep policy rates lower, expand refinancing tools worth trillions of yuan, and hold the RMB/USD exchange rate steady at 6.9890 — a 4.4% rise from 2024. These measures aim to sustain economic stability and liquidity while supporting growth.

Terms & Concepts

Reserve Requirement Ratio (RRR): The minimum fraction of customer deposits and notes that each commercial bank must hold as reserves, set by a central bank to control liquidity.
Monetary Policy: Actions taken by a central bank to control money supply, interest rates, and credit in order to achieve economic objectives such as growth and price stability.
Liquidity: The ease with which assets can be converted into cash without affecting their market price, crucial for stable financial operations.