The People's Bank of China pledges to reduce the reserve requirement ratio and interest rates by these percentages.

During the press conference held earlier on Friday morning, the Governor of the People’s Bank of China, Pan Gongsheng, announced further reductions in monetary policy, with his key statements in this regard being as follows:

• To achieve dynamic balance, macroeconomic policy should shift from focusing on investment to achieving a balance between investment and consumption.
• The People’s Bank of China will further improve the monetary policy framework, focusing on achieving a reasonable increase in inflation as a primary consideration.
• The reserve requirement ratio (RRR) may be reduced by 25 to 50 basis points by the end of the year.
• A further reduction in the reserve requirement ratio is expected by the end of the year, depending on the current liquidity situation in the market.
• The interest rate on the 7-day reverse repurchase operations in open market operations will be cut by 0.2%.
• The interest rate on medium-term lending facilities may be lowered by 0.3%, depending on market liquidity.
• The benchmark interest rate on lending (LPR) may also be reduced by 0.2%.