(Bloomberg) — China plans to cut interest rates and reserve requirements in a timely manner next year, 21st Century Business Herald reported, citing Wang Xin, head of the research department under the People’s Bank of China.
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According to reports, Wang said at an event on Saturday that the People’s Bank of China would strengthen the supply of currency and credit. He said there was scope to further reduce RRR (the amount of cash banks must hold) from its current average level of 6.6%.
The report quoted Wang as saying that lending conditions for the real economy would also be further eased. China’s credit expansion unexpectedly slowed in November due to weak loan demand, data showed on Friday, suggesting growing challenges to economic growth.
Chinese leaders this week signaled they would introduce stronger stimulus measures to boost growth and place greater emphasis on consumption over the coming year.
According to CCTV, citing Han Wenxiu, deputy director of the Central Bureau of Finance and Economic Affairs, China plans to increase the fiscal deficit ratio and fiscal deficit scale in 2025, and increase the issuance of super-long-term special national bonds and local government special bonds. It is said that it is. The General Affairs Committee also attended the same event.
Han said details of more “aggressive and promising” macro policies will be introduced at the annual plenary session of the National People’s Congress and the Chinese People’s Political Consultative Conference.
He predicted economic growth this year would be around 5%, in line with the official target.
(Updates with comment from Han Wenxiu in last 3 paragraphs.)
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