On February 13, the People's Bank of China released the implementation report of China's monetary policy in the fourth quarter of 2024 (hereinafter referred to as "the report"). The report points out that in 2024, the monetary policy will adhere to a supportive stance, providing strong support for the economic recovery and improvement. The total financial output has grown reasonably, with the stock of social financing scale and M2 broad money increasing by 8.0% and 7.3% respectively year-on-year by the end of 2024, and the balance of RMB loans reaching 255.7 trillion yuan. The loan interest rate has significantly decreased, with the interest rates for newly issued corporate loans and personal housing loans in December 2024 decreasing by about 40 and 90 basis points respectively year-on-year. The credit structure continues to optimize, with specialized, refined, and new enterprise loans and inclusive small and micro loans increasing by 13.0% and 14.6% respectively year-on-year by the end of 2024, continuing to exceed the growth rate of all loans. The Renminbi has appreciated against a basket of currencies, with the China Foreign Exchange Trading System (CFETS) Renminbi Exchange Rate Index rising by 4.2% at the end of 2024 compared to the end of the previous year (i.e. 2023). The report believes that the adverse effects brought about by the current external environmental changes have deepened, and difficulties and challenges such as insufficient domestic demand and numerous risks still exist. However, China's economic foundation is stable, with many advantages, strong resilience, and great potential. The supporting conditions and basic trends for long-term improvement have not changed. As for the main ideas of monetary policy in the next stage, the report proposes that the People's Bank of China will adhere to the general tone of seeking progress while maintaining stability, fully implement the new development concept, unswervingly follow the path of financial development with Chinese characteristics, further deepen financial reform and high-level opening to the outside world, continue to promote high-quality financial development and financial power building, accelerate the improvement of the central bank system, and further improve the monetary policy framework. Pay attention to balancing the relationship between short-term and long-term, stable growth and risk prevention, internal balance and external balance, improve the forward-looking, targeted and effective macroeconomic regulation, enhance macroeconomic policy coordination and cooperation, support the expansion of domestic demand, stabilize expectations, stimulate vitality, and promote stable economic growth. Implement a moderately loose monetary policy. By comprehensively utilizing various monetary policy tools, adjusting and optimizing policy intensity and pace according to the domestic and international economic and financial situation and financial market operation, maintaining sufficient liquidity, and matching the expected goals of economic growth and overall price level with the growth of social financing scale and money supply. Taking the promotion of reasonable price recovery as an important consideration in grasping monetary policy, we aim to keep prices at a reasonable level. Smooth the transmission mechanism of monetary policy, better grasp the relationship between stock and increment, focus on revitalizing stock financial resources, and improve the efficiency of fund utilization. Strengthen the guidance of central bank policy interest rates, improve the transmission mechanism of market-oriented interest rates, give full play to the self-discipline mechanism of market interest rate pricing, strengthen the implementation of interest rate policies, enhance the independent and rational pricing ability of banks, and promote the reduction of enterprise financing and resident credit costs. Give full play to the dual functions of the total quantity and structure of monetary policy tools, adhere to focusing on key areas, being reasonable and moderate, and making progress and retreat, optimize the tool system, continue to do a good job in the "five major articles" of finance, and further increase financial support for technological innovation and promoting consumption. Adhere to a managed floating exchange rate system based on market supply and demand, with reference to a basket of currencies for adjustment, give full play to the decisive role of the market in the formation of exchange rates, enhance the resilience of the foreign exchange market, stabilize market expectations, strengthen market management, resolutely correct market pro cyclical behavior, resolutely dispose of market disorder behavior, resolutely prevent exchange rate overshoot risks, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. Explore and expand the macro prudential and financial stability functions of central banks, and safeguard the bottom line of preventing systemic financial risks. (New Society)