BEIJING, Feb. 13 (Xinhua) — China’s central bank will utilize a variety of monetary policy tools and adjust the intensity and timing of policies as appropriate, based on domestic and international economic and financial conditions, as well as financial market operations, according to a report released by the People’s Bank of China (PBOC) on Thursday.
The aim is to maintain ample liquidity and ensure that social financing and money supply growth align with the country’s goals for economic growth and overall price levels, according to the PBOC’s fourth-quarter 2024 monetary policy report.
China’s monetary policy toolkit is enriched continuously, and the scope of its monetary policy functions is expanding, the report said.
Since 2013, the central bank has reduced the reserve requirement ratio (RRR) 29 times, decreasing the average RRR from 20.1 percent to 6.6 percent.
Outstanding relending loans, including medium-term lending facility loans, stood at 11.4 trillion yuan (1.59 trillion U.S. dollars) at the end of 2024, representing 28.8 percent of the PBOC’s total assets.
In 2024, the PBOC conducted net purchases of government bonds worth a total of 1 trillion yuan, which, in combination with other monetary tools, maintained a reasonably ample level of liquidity.
Next, the PBOC will adopt a moderately loose monetary policy and increase financial support further to drive technological innovation and promote consumption, according to the report.
