China to implement moderately loose monetary policy, launch measures to support economy

China's central bank said it will implement a moderately loose monetary policy this year, and introduce a combination of measures in support of economic development.

According to the People's Bank of China (PBOC), this year's monetary policy aims to bolster the real economy, prevent risks, and address constraints such as the interest rate gap between China and the United States and the interest rate gap between banks. The policy must be implemented at a reasonable speed and level.

"In light of changing situation, efforts will be made to keep the total amount, structure, interest rate, exchange rate and other aspects of monetary policy at a reasonable and balanced level, following the introduction of a policy combination," said Dong Ximiao, the chief researcher of Merchants Union Consumer Finance.

Industry insiders said that since the beginning of this year, the central bank has made many positive proposals for monetary policy in terms of total volume, interest rate, structure, exchange rate among others, which are conducive to further boosting market confidence.

In terms of total volume, there is still room to cut reserve requirement ratio, indicating that the central bank has the ability and willingness to increase macro regulation and support the real economy.

As for the structure, the central bank said it will study the creation of new structural policies, with a focus on supporting investment and financing for boosting scientific and technological innovation, promoting consumption and stabilizing foreign trade.

"Increasing financial support for major strategies, key areas and weak links will help promote smooth macroeconomic circulation, accelerate economic structural transformation and cultivate new growth drivers," said Wen Bin, the chief economist of China Minsheng Bank.

Regarding the exchange rate, the PBOC has reiterated that it will resolutely prevent the RMB exchange rate from overshooting, and has the experience, confidence and ability to maintain stable operation of the foreign exchange market.

The central bank said that it has sufficient reserve tools and policy space in the face of uncertainties in the macro environment, especially the external environment.

It said that many positive factors have underlined the improvement of the economic situation. With more proactive and effective macro policies continuing to take effect, it said, the financial system will provide more support for the recovery and improvement of the real economy and promote high-quality development.

China to implement moderately loose monetary policy, launch measures to support economy

Iranian Foreign Minister Seyed Abbas Araghchi said on Monday that Iran has obtained extensive documents and evidence linking the recent unrest across the country to the U.S. and Israel, noting that Mossad agents attempted to direct such "terrorist acts."

Araghchi said at a press conference in Tehran that since Dec 28, 2025, Iran had seen peaceful demonstrations organized by industry associations and economic professional. In the following days, more participants joined, and the situation gradually escalated from peaceful rallies into violent clashes.

Beginning on Jan 8, terrorists and armed groups carrying weapons entered protest sites and opened fire on police and civilians, with the aim of steering demonstrations toward violence, bloodshed and chaos, he said.

"Israeli media reports are rife with claims that Israel has designed and conducted operations in Iran. Mr. [Mike] Pompeo, who was Trump's CIA director, said on his X that 'Happy New Year to every Iranian in the streets. Also to every Mossad agent walking beside them.' This clearly shows that Mossad agents attempted to direct such terrorist acts," the minister said. Addressing military threats from the U.S. and Israel, Araghchi said Iran does not seek war but is fully prepared to face up to war. He added that Iran is ready for serious and pragmatic negotiations with the U.S., but the talks must be based on fairness, equality and mutual respect, rather than unilateral pressure or directives from Washington.

On the same day, Iranian Foreign Ministry spokesman Esmaeil Baghaei condemned the U.S. and Israel at a regular press briefing in Tehran. He said the two countries have made "extensive interventionist remarks" regarding Iran's situation, saying such statements are intended to foment chaos, violence and instability.

The spokesman said Iran is closely monitoring the development of the situation and remains fully prepared, warning that Iran's armed forces will respond to any act of aggression by its enemies.

Mossad agents attempt to direct terrorist acts: Iranian FM