On the monetary front, she said policymakers will follow the “moderately loose“ monetary policy tone set in the Central Economic Work Conference, with explicit calls to lower the funding costs of corporate finance and household credit, cutting the reserve requirement ratio and policy rates, enhancing countercyclical adjustments, and pushing forward a “reasonable rebound“ of inflation.

　　“We expect the People's Bank of China, the nation's central bank, to cut policy rates by 30 to 40 basis points in 2025, likely in later months after the two sessions, and commercial banks to lower deposit rates further,“ she said. “The PBOC may also use various facilities to maintain ample liquidity, including more outright repos, partly to cope with a much larger scale of government bond issuance in 2025.“

　　Wang said the government is likely to prioritize “boosting consumption“ as the top policy task in the two sessions.

　　“We expect the government to ramp up fiscal spending to support consumption and the household sector, including more than doubling the size of trade-in programs, creating a subsidy scheme for families with young children, and increasing the payout level of residents' basic pension and government contribution to basic social insurance.“

　　During a news conference at the beginning of 2025, the National Development and Reform Commission, the country's top economic regulator, said the annual quota for the consumer goods trade-in program for this year, which will be significantly larger than that of 2024, will be announced during the two sessions.

　　China's accelerated push for promoting trade-in deals for consumer goods is paying off, with significant growth in consumer spending on key items such as automobiles and home appliances, providing a solid base for steady economic recovery.