On August 15, the central bank released the China Monetary Policy Implementation Report for the Second Quarter of 2025. The report mentioned that in the first half of the year, my country's monetary policy was moderately relaxed, countercyclical adjustment was strengthened, and a variety of monetary policy tools were comprehensively used to serve the high-quality development of the real economy, creating a suitable monetary and financial environment for the sustained recovery and improvement of the economy.

Of course, the countercyclical adjustment effect of monetary policy is more obvious. The total financial volume grew steadily, the credit structure was continuously optimized, the RMB exchange rate remained basically stable at a reasonable equilibrium level, and the central price of the RMB exchange rate against the US dollar at the end of June was basically the same as the end of the previous year.

The People's Bank of China said that the next stage will implement a moderately loose monetary policy. According to the domestic and international economic and financial situation and financial market operation, grasp the intensity and rhythm of policy implementation, maintain sufficient liquidity, and match the expected goals of economic growth and total price level, and continuously create a suitable financial environment.

Promote prices to maintain a reasonable level

Promote the reasonable rebound of prices as an important consideration for grasping monetary policy, and promote prices to maintain a reasonable level. Further improve the interest rate regulation framework, strengthen the central bank's policy interest rate guidance, improve the market-oriented interest rate formation transmission mechanism, give full play to the role of the market interest rate pricing self-discipline mechanism, continue to strengthen the implementation and supervision of interest rate policies, reduce bank debt costs, and promote the decline of social comprehensive financing costs.

Increase credit support for scientific and technological innovation, etc.

Smooth the monetary policy transmission mechanism, improve the efficiency of capital use, prevent idle funds, and grasp the balance between financial support for the real economy and maintaining its own health. Give full play to the dual functions of total monetary policy tools and structure, make good use of structural monetary policy tools, and strengthen support for scientific and technological innovation, boost consumption, small and micro enterprises, and stabilize foreign trade.

Resolutely correct market pro-cyclical behavior

Adhere to a floating exchange rate system based on market supply and demand, adjust with reference to a basket of currencies, adhere to the decisive role of the market in exchange rate formation, enhance the resilience of the foreign exchange market, stabilize market expectations, resolutely correct market pro-cyclical behavior, resolutely deal with behaviors that disrupt market order, resolutely prevent the risk of exchange rate overshooting, and maintain the basic stability of the RMB exchange rate at a reasonable equilibrium level. Explore and expand the central bank's macro-prudential and financial stability functions, maintain the stability of the financial market, and resolutely maintain the bottom line of preventing systemic financial risks.

(CCTV reporter Sun Yan)