BEIJING, Feb. 13 (Xinhua) — The People’s Bank of China (PBOC) has announced that it will employ a diverse set of monetary policy tools and adjust their application based on both domestic and international economic conditions, as well as financial market dynamics. This strategy aims to sustain sufficient liquidity and ensure that the growth of social financing and money supply is in line with the country’s economic growth targets and overall price stability, as stated in the PBOC’s monetary policy report for the fourth quarter of 2024.

The report highlighted that China’s monetary policy toolkit is continually evolving, with an expanding range of functions. Since 2013, the central bank has implemented 29 reductions in the reserve requirement ratio (RRR), which has lowered the average RRR from 20.1% to 6.6%. By the end of 2024, the total outstanding relending loans, including those from the medium-term lending facility, reached 11.4 trillion yuan (approximately 1.59 trillion U.S. dollars), accounting for 28.8% of the PBOC’s total assets.

In 2024, the PBOC also engaged in net purchases of government bonds totaling 1 trillion yuan. This action, alongside other monetary measures, has helped maintain a reasonably ample liquidity level in the financial system. Moving forward, the PBOC plans to implement a moderately loose monetary policy and enhance financial support to stimulate technological innovation and boost consumption, as outlined in the report.