MNI BRIEF: China Lowers 2025 CPI Target
MNI (BEIJING) - China has reduced its CPI target to around 2%, the lowest level since 2003 while repeating its moderately loss monetary stance, according to the Government Work Report released during the opening ceremony of the annual National People’s Congress on Wednesday.
The Reserve Requirement Ratio (RRR) and interest rate will be cut in a timely manner and ample liquidity will be maintained, Premier Li Qiang told NPC delegates, noting authorities will ensure that the growth of total social financing and money supply aligns with economic growth and expected price level targets. (See MNI: China To Lower 2025 CPI Goal As Deflation Pressure Looms)
Structural monetary policy tools should be optimised and innovated to promote the healthy development of the real-estate and stock markets, while increasing support for technological innovation, green development, consumption, as well as private and small-micro enterprises, he said, adding the yuan exchange rate should be kept basically stable at a reasonable and balanced level. Additionally, the central bank should expand its macroprudential and financial stability functions, innovate financial instruments, and safeguard financial market stability, he said.