China pledges to raise deficit-to-GDP ratio, cut interest rates in 2025

China should set a higher deficit-to-GDP ratio for 2025 and reduce the reserve requirement ratio and interest rates when appropriate, according to the annual Central Economic Work Conference held from Wednesday to Thursday.

The meeting pledged to implement a more proactive fiscal policy, with more issuance of ultra-long special treasury bonds and local government special-purpose bonds, and to adopt a moderately loose monetary policy next year.