BEIJING - China's economy is expected to maintain stable growth in 2025, according to the Q4 2024 monetary policy report released by the People's Bank of China on Thursday.

Stimulus measures rolled out in late 2024 have already begun to revitalize production, demand, and market sentiment, which will further sustain the recovery momentum, according to the report.

Domestic demand has shown great potential for improvement, with measures to boost consumption and investment delivering standout results. Notably, retail sales for home appliances jumped 11.8 percent year-on-year in 2024.

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China will adopt a more proactive fiscal policy and a moderately loose monetary policy, prioritizing the stabilization of prices at reasonable levels, the central bank said.

Monetary authorities will deepen market-driven exchange rate reforms, strengthen foreign exchange market resilience, and enhance cross-border capital flow monitoring, in a bid to ensure the yuan remains stable at an equilibrium level.

China will accelerate institutional reforms and high-standard financial market opening, with measures to advance the yuan's global use in cross-border trade and investment, and deepen international currency cooperation, the central bank added.  

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The central bank also said it will utilize a variety of monetary policy tools and adjust the intensity and timing of policies as appropriate, based on domestic and international economic and financial conditions, as well as financial market operations.

The aim is to maintain ample liquidity and ensure that social financing and money supply growth align with the country's goals for economic growth and overall price levels, according to the PBOC's report.

China's monetary policy toolkit is enriched continuously, and the scope of its monetary policy functions is expanding, the report said.

Since 2013, the central bank has reduced the reserve requirement ratio (RRR) 29 times, decreasing the average RRR from 20.1 percent to 6.6 percent.

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Outstanding re-lending loans, including medium-term lending facility loans, stood at 11.4 trillion yuan ($1.59 trillion) at the end of 2024, representing 28.8 percent of the PBOC's total assets.

In 2024, the PBOC conducted net purchases of government bonds worth a total of one trillion yuan, which, in combination with other monetary tools, maintained a reasonably ample level of liquidity.