China plans to implement an “appropriately loose” monetary policy next year to support economic growth, marking its first policy shift toward easing since 2010.

China will adopt a more proactive fiscal policy and enhance “unconventional” counter-cyclical measures to boost economic growth, as reported by Xinhua following a Politburo meeting.

The government aims to “vigorously” increase consumption and expand domestic demand across all sectors to drive economic activity.

Ahead of the annual Central Economic Work Conference, the Politburo emphasised pursuing “progress while maintaining stability” in 2025, focusing on innovation and stability.

Policies will include proactive fiscal measures and a loosened monetary approach, with refinements to the policy toolkit and stronger counter-cyclical adjustments.

China’s shift to an “appropriately loose” monetary policy marks its first easing stance since late 2010, as revealed in Politburo announcements.

The central bank categorises policy stances as “loose,” “appropriately loose,” “prudent,” “appropriately tight,” and “tight,” allowing flexibility within each category.

After adopting an “appropriately loose” policy following the 2008 global financial crisis, China shifted to a “prudent” stance in late 2010.

The future of investing is here! Unicorn Signals leverages advanced AI technology to provide you with powerful market predictions and actionable stock scans. Download the app today and 10x your trading & investing journey!