The central bank: Maintain a moderately loose monetary policy and expand financial supply in the consumer sector.

    The People's Bank of China released the “China Monetary Policy Implementation Report for the Third Quarter of 2025” (hereinafter referred to as the “Report”) on November 11, indicating that there is a solid foundation and sufficient support for achieving the annual targets. Regarding monetary policy in the next phase, the Report proposes that the central bank will implement a moderately loose monetary policy to maintain relatively accommodative social financing conditions. It will strengthen financial support to boost and expand consumption, increase financial supply in the consumption sector, and study the implementation of policy measures to support individuals in repairing their credit.

    Currently, China's outstanding RMB loans have reached 270 trillion yuan, while the stock of social financing stands at 437 trillion yuan. A special section of the Report emphasized the need to view aggregate financial indicators scientifically. As the base expands, a natural slowdown in the growth rate of aggregate financial indicators is consistent with China's economic transition from high-speed growth to high-quality development.

    Wen Bin, Chief Economist at China Minsheng Bank, stated that future financial influence on the real economy will primarily occur through interest rate channels. Effectively leveraging interest rate regulation mechanisms will better stimulate corporate investment and household consumption, thereby boosting effective demand in the real economy.

    The report's column further notes that as China's financing structure and economic composition evolve, banks' channels for money creation have become more diversified, and the central bank's methods for base money issuance have also expanded. Whether through indirect financing like loan issuance or direct financing like bond purchases, banks can to some extent substitute and complement each other, both reflecting credit expansion supporting the real economy.

    “Loan issuance is not the only channel for commercial banks to create money,” an industry expert told Securities Times reporters. Whether commercial banks issue loans or purchase other financial assets, they simultaneously generate deposits for counterparties within the banking system, thereby creating broad money.

    The Report analyzed both domestic and international economic and financial conditions. Regarding external factors, it noted that global economic growth momentum remains insufficient, inflation trends are diverging, and labor markets are cooling. The impact of tariff policies in some economies continues to unfold, while major economies maintain high debt levels, leaving global growth and inflation subject to uncertainty.

    Looking ahead to China's macroeconomic outlook, the Report asserts that the national economy is progressing steadily with a solid foundation and support to achieve the annual targets. Regarding price trends, the Report notes that the central government emphasizes deepening the development of a unified national market, while macro-regulatory measures to boost consumption are being progressively implemented, positively influencing a reasonable recovery in prices.

    Regarding the main approach to monetary policy in the next phase, the Report proposes that the central bank will strengthen the consistency of macro policy orientations, enhance countercyclical and cross-cycle adjustments, improve macroeconomic governance efficiency, and continue to stabilize growth, employment, and expectations. It will implement a moderately loose monetary policy to maintain relatively loose social financing conditions. Based on changes in economic and financial conditions, it will continue to foster an appropriate monetary and financial environment. It will comprehensively utilize various monetary policy tools to maintain ample liquidity.

    The Report also proposes studying measures to improve credit enhancement systems for private SMEs and policies to support financing for private and micro/small enterprises. It will strengthen financial support to boost and expand consumption, increase financial supply in consumption sectors, explore policies to help individuals repair credit, and unlock consumption potential. Prevent excessive exchange rate fluctuations and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. Further expand the use of the RMB in cross-border trade and investment, deepen foreign currency cooperation, and develop offshore RMB markets. Enrich the macroprudential policy toolkit and continuously expand the scope of macroprudential coverage.