China’s central bank governor is reaffirming a commitment to supportive monetary policy as the nation prepares for a crucial meeting later this month that will shape next year’s economic strategies.
Pan Gongsheng, governor of the People’s Bank of China (PBOC), announced on Monday that the central bank will maintain its supportive stance throughout 2025. He emphasized the use of various monetary policy tools to enhance counter-cyclical measures aimed at stabilizing the economy.
During a financial forum in Beijing, Pan highlighted the PBOC’s focus on ensuring sufficient liquidity in the market while also striving to lower financing costs for both businesses and households. He noted the importance of structural monetary policy tools in promoting stable growth in real estate and capital markets.
Additionally, Pan outlined plans to reform the monetary policy framework, which will involve improving the execution and transmission of interest rate policies and expanding the range of tools available to the central bank.
In other economic indicators, the official manufacturing purchasing managers’ index (PMI) rose to 50.3 in November, up from October’s 50.1, according to the National Bureau of Statistics. This marks a positive shift after five consecutive months of contraction prior to October.
