Official announcements from the People's Bank of China

China Makes Unprecedented Shift from 'Prudent' to 'Moderately Loose' Monetary Policy to Boost Consumption

Dec 9, 2024, 07:46 AM

China's top leaders have changed their monetary policy stance for the first time in 14 years, shifting from 'prudent' to 'moderately loose', an unprecedented wording change. The Politburo, led by President Xi Jinping, announced plans to implement a more proactive fiscal policy and moderately loose monetary policy next year. They pledged to boost consumption forcefully, expand domestic demand in all aspects, enrich and improve the policy toolbox, and stabilize the property and stock markets. The leadership also emphasized preventing and resolving risks in key areas to guard against systemic risks.