The People’s Bank of China published its 15th Five-Year reform and development
plan, calling to strengthen a Chinese-characteristics modern monetary policy
framework and refine central-bank base-money injection mechanisms. The plan
directs monetary and credit policy tools to perform both aggregate and
structural roles, deepens market-based interest-rate formation, regulation and
transmission, and emphasizes the market’s decisive role in exchange-rate
formation while keeping the renminbi broadly stable at a reasonable and balanced
level. It also calls for enhancing the macroprudential framework by expanding
PBOC macroprudential and financial-stability functions and coverage,
diversifying tools, establishing macroprudential monitoring and evaluation,
strengthening financial-stability safeguards and prudently resolving risks in
key sectors.
