China’s Monetary Policy Framework

——Analysis based on Monetary Policy Report

DOI

10.2991/978-94-6463-706-9_65How to use a DOI?

Keywords

Monetary policy transmission; Reform; Interest Rate

Abstract

In recent years, the intermediate target of China’s monetary policy has gradually shifted from quantity based to price based, which is also reflected in the People’s Bank of China(PBC)’s 2024 Q2 Monetary Policy Implementation Report. In the report, the PBC mentioned the need to reform the pricing mechanism of LPR, which means decoupling LPR from MLF interest rates and gradually linking it to the 7-day reverse repo rate. In order to explore the reasons for the reform, this article first reviews the discussions on monetary policy in the literature, sorts out the transmission path framework of China’s monetary policy, and finally summarizes the reasons and directions for the reform of the PBC. In short, the PBC is gradually forming a price based monetary policy target, which is also an important aspect of China’s reform.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Zhaoyan Guo
PY  - 2025
DA  - 2025/05/07
TI  - China’s Monetary Policy Framework
BT  - Proceedings of the 2024 2th International Conference on Economic Management, Financial Innovation and Public Service (EMFIPS 2024)
PB  - Atlantis Press
SP  - 726
EP  - 737
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-706-9_65
DO  - 10.2991/978-94-6463-706-9_65
ID  - Guo2025
ER  -