China’s central bank to focus on price growth in monetary policy

Published 15/08/2025, 11:38
China’s central bank to focus on price growth in monetary policy

Investing.com -- China’s central bank announced Friday it will prioritize achieving a reasonable pace of price growth when setting monetary policy, as the country continues to face deflationary pressures.

In its second-quarter monetary policy implementation report, the central bank emphasized the importance of using structural monetary policy tools to support various sectors of the economy.

"We should make good use of structural monetary policy tools to intensify support for scientific and technological innovation, boost consumption, support small and micro enterprises and stabilize foreign trade," the bank stated in the report.

The announcement comes as China grapples with persistent deflationary pressures, with factory-gate prices declining for more than two years. This prolonged period of falling producer prices has created challenges for the world’s second-largest economy.

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