China maintained a stable monetary policy to ensure economic growth and high-quality development in 2025, according to Pan Gongsheng, governor of the People's Bank of China (PBOC).
In a recent interview with China Media Group (CMG), Pan noted that in 2025, the PBOC introduced a series of monetary and financial policies covering aggregate, price, and structure. These efforts resulted in reasonable growth in total financing. By the end of 2025, the total social financing and the broad money supply (M2) increased year on year by 8.3 percent and 8.5 percent, respectively, both significantly higher than the nominal GDP growth rate. Meanwhile, overall financing costs remained at a low level.
"We have lowered policy rates and guided the loan prime rate (LPR) and broader market rates to go down. We have also strengthened the implementation and supervision of interest rate policies while improving self-regulatory management. In December 2025, the weighted average interest rates for new enterprise loans and individual housing loans both stood at approximately 3.1 percent," Pan said. The central bank governor also noted that the credit structure continued to improve in 2025, with loans to sectors such as science and technology, green development, inclusive finance, elderly care and the digital economy all posting double-digit growth, outpacing overall loan expansion.
"The financial market has been operating steadily, with the RMB exchange rate remaining basically stable against a basket of currencies. The bond market has seen healthy development, with the 10-year treasury bond yield stabilizing around 1.8 to 1.9 percent. The coordinated efforts from various departments have effectively bolstered the confidence of the capital market, significantly enhancing its internal stability and vitality," said Pan.
China’s monetary policy strong support for high-quality economic growth in 2025: central bank governor
China’s monetary policy strong support for high-quality economic growth in 2025: central bank governor
