On March 13, the Party Committee of the People's Bank of China held an enlarged meeting, reiterating that "moderately loose monetary policy should be implemented". The meeting proposed to cut reserve requirement ratios and interest rates at appropriate times based on the domestic and international economic and financial situation and the operation of financial markets, and to comprehensively use various monetary policy tools such as open market operations to maintain sufficient liquidity, so as to match the expected targets of economic growth and overall price levels with the growth of social financing scale and money supply. The meeting believes that the 2025 National People's Congress and Chinese People's Political Consultative Conference will be a very important meeting held at a critical juncture of the conclusion of the 14th Five Year Plan and the planning and layout of the 15th Five Year Plan. The 2025 Government Work Report scientifically proposes the overall requirements, main expected goals, and macro policy orientation for this year's economic and social development, and comprehensively deploys the key work tasks for this year. The People's Bank of China should focus on target guidance, grasp the policy orientation, stress timing and strength, strengthen systematic thinking, and create a good monetary and financial environment for promoting the sustained recovery of the economy. The meeting made it clear to implement a moderately loose monetary policy. Balancing short-term and long-term, stable growth and risk prevention, internal and external balance, supporting the real economy and maintaining the health of the banking system itself. Based on the domestic and international economic and financial situation and the operation of financial markets, we will take the opportunity to lower reserve requirement ratios and interest rates, comprehensively use various monetary policy tools such as open market operations, maintain sufficient liquidity, and match the expected goals of economic growth and overall price levels with the growth of social financing scale and money supply. Further unblock the transmission channels of monetary policy, improve the formation and transmission mechanism of interest rates, and promote the reduction of comprehensive financing costs in society. Strengthen communication with the market and enhance policy transparency. Adhere to the decisive role of the market in the formation of exchange rates, strengthen expectation guidance, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. The term 'moderately loose' sends a very positive signal to the market Tian Xuan, Dean of the National Institute of Finance at Tsinghua University, stated that under this monetary policy tone, there is ample space in the policy toolbox, and in the future, policies will be flexibly implemented at appropriate times based on the domestic and international economic and financial situation and the specific situation of the financial market. The chief economist of CITIC Securities clearly believes that, in terms of liquidity adjustment, it is expected that the People's Bank of China will continue to release medium and long-term liquidity based on buyout reverse repo. In combination with the power of fiscal policy, the purchase of treasury bond bonds may also be carried out at a selected time along with the subsequent rise in government bond supply. Focusing on strengthening financial services in major strategic areas, key areas, and weak links, the meeting pointed out the scientific use of various structural monetary policy tools to guide financial institutions to increase support for technology finance, green finance, inclusive small and micro enterprises, pension finance, and other fields. Research the creation of new structural monetary policy tools, with a focus on supporting investment and financing in the field of technological innovation, promoting consumption, and stabilizing foreign trade. Strengthen policy coordination and transmission, support economic structural adjustment, transformation and upgrading, and the transformation of old and new driving forces, and better leverage the synergistic effects of monetary policy, fiscal subsidies, risk compensation and other measures. Enhance the service capabilities of financial institutions, enrich financial products, improve internal institutional arrangements, strengthen information technology support, and optimize the allocation of financial resources. The meeting mentioned support for the field of technological innovation and the importance of doing well in the five major articles. There may be room for interest rate cuts in subsequent structural tools Clearly stated. In addition, in terms of prudently and effectively preventing and resolving financial risks in key areas, the meeting also proposed exploring the expansion of macro prudential and financial stability functions to maintain financial market stability. Support the stable development of the capital market. Continue to do a good job in resolving debt risks of financial support financing platforms. Adhere to the principles of marketization and rule of law, and actively support the risk management of small and medium-sized financial institutions. Improve macro prudential management of real estate finance and establish a sound system for real estate finance. (New Society)