China is planning to cut interest rates and relax the reserve requirement ratio in a timely manner next year, according to a report by the 21st Century Business Herald. The move aims to boost the real economy and stimulate growth.
The People’s Bank of China will increase the supply of monetary and credit, increasing the intensity of these measures, said Wang Xin, director of the research bureau under the central bank. This includes reducing the RRR (reserve requirement ratio) from its current level of 6.6% to more.
Additionally, financing conditions for the real economy are expected to be relaxed. However, China’s credit expansion unexpectedly slowed in November due to a faltering loan demand.
In an effort to boost growth, China’s top leaders have signaled that they will adopt more forceful stimulus and focus on consumption. For 2025, the government plans to increase the fiscal deficit ratio and issue special bonds to support economic growth.
More details about macro policies are expected to be introduced at the annual plenary sessions of the National People’s Congress and the Chinese People’s Political Consultative Conference. The economy is forecasted to grow around 5% this year, in line with the official target.
Source: https://finance.yahoo.com/news/china-cut-rates-rrr-next-083821625.html