Central Bank: Choose the right time to cut reserve requirement ratio and interest rates

The Monetary Policy Committee of the People's Bank of China held its first quarterly meeting for 2025. The meeting discussed the main ideas for the next stage of monetary policy, suggesting to increase the intensity of monetary policy regulation, improve the foresight, targeting and effectiveness of monetary policy control. According to domestic and foreign economic and financial situations and market operations, it will opportunistically cut interest rates and reserve requirements. Maintain ample liquidity, guide financial institutions to increase their efforts in money credit investment, so that social financing scale and money supply growth match with economic growth and price level expectation targets. Strengthen central bank's policy rate guidance, perfect market-based interest rate formation transmission mechanism, play a role in market interest rate pricing self-discipline mechanism, strengthen interest rate policy implementation and supervision. Promote a reduction in overall societal financing costs.