1、China Monetary Policy ReportQ1 2025(May 9,2025)Monetary Policy Analysis Group ofthe Peoples Bank of ChinaIExecutive SummarySince the beginning of 2025,under the strong leadership of the CPC CentralCommittee with Comrade Xi Jinping as its core,the Chinese economy has developedsteadily on a positive t

2、rajectory,underpinned by macro policy coordination.In Q1,the Gross Domestic Product(GDP)grew 5.4 percent year on year,with a sustaineduplift in social confidence as well as solid progress in high-quality development,marking a robust beginning for the year.Following the guidance of Xi JinpingThought

3、on Socialism with Chinese Characteristics for a New Era,the Peoples Bankof China(PBOC)earnestly implemented the decisions and arrangements of the CPCCentralCommitteeandtheStateCouncil.Bypursuinganappropriatelyaccommodative monetary policy and by strengthening counter-cyclical adjustments,the PBOC ha

4、s created a favorable monetary and financial environment for sustainedeconomic recovery and development.First,money and credit maintained reasonable growth.The PBOC kept liquidityadequate by using a mix of tools,including the required reserve ratio(RRR),openmarket operations(OMOs),medium-term lendin

5、g facility(MLF)operations,andcentral bank lending and discounts.Financial institutions were encouraged to fullysatisfy the effective credit needs of the real economy and to enhance the efficiency offund utilization so as to improve the quality and efficiency of financial services for thereal economy

6、.Second,overall social financing costs were guided to move downward.The PBOC continued to improve the market-oriented interest rate adjustmentframework and lowered the policy rate and the rates on structural monetary policyinstruments,while strengthening the implementation of the interest rate polic