HTSC·2026-02-11 11:35Monetary Policy Insights - The central bank emphasizes coordination between monetary and fiscal policies to boost domestic demand, particularly through structural monetary policy tools targeting key areas like technology innovation and small and medium enterprises[1] - The weighted average loan rate (WALR) decreased by 10 basis points to 3.15% in Q4 2025, with general loans dropping by 12 basis points to 3.55%[2] - Social financing growth rate slightly declined from 8.7% at the end of Q3 to 8.3% in Q4 2025, reflecting weaker private sector financing demand[2] Economic Outlook - The central bank perceives short-term resilience in the global economy, but acknowledges increasing uncertainties, particularly in global trade and financial market volatility[2] - Domestic economic conditions are expected to stabilize and improve, supported by strong policy backing and the ongoing development of a unified national market[2] - The GDP for 2025 is projected at 140.2 trillion yuan, with a year-on-year growth of 5.0%[5] Policy Implementation - The central bank plans to utilize various policy tools flexibly, including potential rate cuts and reserve requirement ratio (RRR) reductions, particularly during the upcoming Two Sessions[3] - Emphasis on enhancing financial support for key sectors such as technology innovation and consumer spending, with a focus on green finance initiatives[3] - The central bank aims to maintain liquidity and relatively loose social financing conditions to support balanced credit distribution and low financing costs[3]