People’s Bank of China: Improve the modern monetary policy framework with Chinese characteristics and enhance the base money issuance mechanism The People’s Bank of China has issued the "15th Five-Year Plan for Reform and Development of the People’s Bank of China.” The plan aims to improve the modern monetary policy framework with Chinese characteristics and optimize the base money issuance mechanism, enhancing both the aggregate and structural functions of monetary and credit policy tools. Th

[People’s Bank of China: Improve the modern monetary policy framework with Chinese characteristics and enhance the base money injection mechanism] The People’s Bank of China has released the “15th Five-Year Reform and Development Plan of the People’s Bank of China.” The plan aims to improve the modern monetary policy framework with Chinese characteristics, enhance the base money injection mechanism, and optimize the aggregate and structural functions of monetary and credit policy tools. It will improve the market-oriented interest rate formation, regulation, and transmission mechanisms, give a decisive role to the market in the formation of the exchange rate, and maintain the RMB exchange rate basically stable at a reasonable and balanced level. The macroprudential management system will be enhanced, with an expansion of the central bank’s macroprudential and financial stability functions, a broader scope of macroprudential management, richer macroprudential management tools, the establishment of a macroprudential monitoring and evaluation mechanism, strengthened construction of the financial stability guarantee system, and prudent mitigation of financial risks in key sectors.