China’s 2025 economic path previewed as central bank pledges ‘supportive’ monetary policy

People’s Bank of China governor Pan Gongsheng pledges to ensure adequate liquidity and lower overall financing costs for businesses and households

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People’s Bank of China governor Pan Gongsheng. Photo: Reuters

Published: 12:10pm, 3 Dec 2024Updated: 1:10pm, 3 Dec 2024

In the first signal of Beijing’s 2025 economic policies, China’s central bank governor pledged a “supportive” monetary policy stance and vowed to enhance countercyclical adjustment with a variety of tools next year.

The comments made by Pan Gongsheng came ahead of the tone-setting annual central economic work conference this month.

The supportive stance, which was first mentioned in the summer, is different from the often used tone of “prudent”, and represented a continuation of the shift to economic stimulus seen since late September.

Speaking at a financial forum in Beijing on Monday, Pan pledged to ensure adequate liquidity and lower overall financing costs for businesses and households.

The central bank would try to optimise structural monetary policy tools to support the stable development of the property and capital markets, while prioritising enhanced support for technological innovation, green finance and consumer finance, Pan said.

“We will actively advance reforms in the monetary policy framework, enhance the implementation and transmission of interest rate policy, and enrich the monetary policy toolbox,” he said, according to People’s Bank of China’s official website.