MNI BRIEF: China To Cut Rates, Boost Borrowing-Work Conference
MNI (BEIJING ) - China will cut reserve requirements and interest rates in a timely fashion, and increase its fiscal deficit ratio in 2025 to boost domestic demand as the external environment becomes more challenging, according to CCTV’s report on the Central Economic Work Conference on Thursday.
Authorities will issue additional ultra-long-term special treasury bonds, and increase the issuance and use of local government special bonds while advancing reforms in the fiscal and tax system, the Conference chaired by President Xi Jinping noted. (See MNI: PBOC To Increase Bond Buying, Fiscal Coordination In 2025)
It called for monetary policy to ensure that the growth of social financing and money supply aligns with targets for economic growth and price levels, while exploring ways to enhance the central bank's macroprudential and financial stability functions. (See MNI: PBOC To Make Q1 Cut After Stance Shift-Former Officials)