People's Bank of China: Improve the market-oriented interest rate formation and transmission mechanism, strengthen the guiding role of the central bank's policy interest rates

The People's Bank of China released the monetary policy implementation report for the third quarter of 2024, emphasizing that a prudent monetary policy should be flexible and appropriate, maintaining reasonable and ample liquidity to promote reasonable growth in credit. The report pointed out the need to improve the market-oriented interest rate formation and transmission mechanism, strengthen the guiding role of policy interest rates, enhance the pricing ability of financial institutions, and reduce the credit costs for enterprises and residents. At the same time, it emphasized the prevention of systemic financial risks and the maintenance of stability in the RMB exchange rate