The 4th Quarter Regular Meeting of the Monetary Policy Committee of the People’s Bank of China (PBC) was held recently, clarifying that in the next stage, it will comprehensively use various tools to strengthen monetary policy regulation, increase counter-cyclical and cross-cyclical adjustment efforts, and promote stable economic growth and reasonable recovery of prices. The meeting pointed out that the current external environment is complex, global economic growth momentum is insufficient, policy adjustments of major economies are uncertain, and although China’s domestic economy is generally stable, it still faces challenges such as excessive supply relative to demand.

In terms of specific measures, it will maintain sufficient liquidity, promote the matching of social financing scale and money supply with economic growth, and keep comprehensive social financing costs at a low level. At the same time, it will strengthen the guidance of policy interest rates, improve the market-oriented interest rate transmission mechanism, pay attention to changes in long-term bond market yields, and smooth the efficiency of policy transmission. In the foreign exchange field, it will enhance market resilience, prevent the risk of excessive exchange rate fluctuations, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. Experts believe that this deployment accurately addresses economic pain points, and the coordinated efforts of monetary and fiscal policies will effectively boost market confidence and inject strong momentum into the real economy.