China's central bank on Tuesday said it will continue implementing a moderately loose monetary policy, pledging to support stable economic growth by maintaining sufficient liquidity with relatively relaxed social financing conditions.
In its report of the monetary policy implementation in the fourth quarter of 2025, the People's Bank of China (PBOC) said it will calibrate the strength, pace and timing of policy measures in response to evolving domestic and global economic and financial conditions, as well as market developments.
Last year, the PBOC rolled out a package of monetary and financial measures, stepping up countercyclical adjustment to bolster the real economy and ensure the stable operation of financial markets, according to the report.
It said that overall financial aggregates expanded at a relatively fast pace in 2025, and the credit structure continued to improve. Lending in priority areas such as technology, green development, inclusive finance, elderly care and the digital economy grew at faster paces than total loan growth.
At the end of last year, loans for science and technology, green loans, inclusive loans, loans for elderly care services, and loans for the digital economy all maintained double-digit growth.
In addition, the RMB exchange rate remained largely stable amid complex international circumstances. At the end of 2025, the closing exchange rate of the yuan against the U.S. dollar was 6.989, appreciating by 4.4 percent compared with the end of 2024.
In the next phase, the central bank said it will continue to implement a moderately loose monetary policy, fully leverage the guiding role of monetary credit policy.
The central bank also pledged that it will implement policies on supporting startups by offering guaranteed loans, and on government-subsidized student loans.
Additionally, the PBOC will ramp up efforts to intensity financial support to effectively boost consumption and ensure the implementation of the one-off credit restoration policy, channeling more financial resources to bolster and expand service consumption. The central bank is committed to continuously lowering overall social financing costs.
China's central bank pledges to maintain moderately loose monetary policy
