BEIJING, 22 September 2025 – The head of the People’s Bank of China (PBOC) pledged on Monday to use a broad set of monetary policy tools to maintain liquidity, lower funding costs, and aid the country’s ongoing economic recovery.
Governor Pan Gongsheng told a press briefing that the central bank’s monetary stance remains firmly rooted in domestic conditions, even as global peers move to ease rates.
“China’s monetary policy is primarily based on domestic data and economic conditions,” Pan said, when asked about the Federal Reserve’s recent rate cut. “This is also the basic methodology used by many central banks internationally including the Federal Reserve, the European Central Bank, and the Bank of Japan, when determining specific adjustments to monetary policy – namely, data-based decision-making.”
No Short-Term Shift, but Steady Commitment
Pan initially said the briefing, which reviewed the financial sector’s performance during the 14th Five-Year Plan (2021–2025), did not focus on near-term policy moves. However, he later underscored that the PBOC would remain proactive in ensuring sufficient liquidity and reducing borrowing costs where possible.
China left its benchmark lending rates unchanged in September for the fourth consecutive month, in line with expectations, after the central bank decided to hold a key policy rate steady last week.
Balancing Recovery and Caution
Although recent data suggested that China’s economy is losing momentum, policymakers appear cautious about deploying major stimulus. Market observers noted that resilient exports and a stock market rally have lessened the urgency for sweeping measures.
Pan’s remarks underline Beijing’s strategy of targeted, data-driven adjustments rather than broad interventions, as the world’s second-largest economy seeks stability amid external headwinds.
Source: Reuters
