The latest Chinese monetary policy report for Q4 2025 emphasizes a continued prudent and accommodative stance to support economic stability and price recovery. Policymakers highlighted the need for timely and flexible adjustments based on evolving domestic and international financial conditions.
The report outlines the use of multiple policy instruments, including reserve requirement ratio cuts and interest rate reductions, to maintain sufficient liquidity and favorable financing conditions. The goal is to guide moderate credit expansion and align monetary aggregates with economic growth and inflation expectations.
Key elements of the policy approach include:
- Balancing growth support with price stability
- Enhancing financial support for the real economy
- Maintaining risk prevention mechanisms
- Ensuring policy responsiveness and precision
This approach reflects a proactive and science-based strategy aimed at fostering sustainable economic development.