China to cut interest rates and reserve requirements in 2025

China plans to cut interest rates and reduce reserve requirements next year, according to Wang Xin, the director of the People's Bank of China’s research bureau, as reported by Bloomberg and the 21st Century Business Herald.

China to cut interest rates and reserve requirements in 2025

Wang indicated there is potential to further lower the Reserve Requirement Ratio (RRR) from its current average of 6.6%. Data released on Friday showed that Chinese banks issued CNY 580 billion in new yuan loans in November 2024, falling short of the market expectation of CNY 950 billion and less than half the CNY 1.170 trillion from the same period last year, highlighting weak credit demand. Last Thursday, China announced plans to raise the budget deficit, increase debt issuance, and ease monetary policy to support stable economic growth.

China's economy expected to grow 5% in 2024, says han Wenxiu

According to Han Wenxiu, deputy director of the Central Financial and Economic Affairs Commission, China’s economy is projected to grow by around 5% this year, as reported by Reuters.