The People's Bank of China (PBOC) is signaling further monetary easing as it seeks to bolster liquidity and support the economy. PBOC Governor Pan Gongsheng stated that the average deposit reserve ratio for Chinese banks is 6.6%, leaving room for potential rate cuts. In December, the PBOC injected 1.7 trillion yuan ($233 billion) into the financial system through reverse repurchase agreements and other tools to ensure ample liquidity. These measures come as policymakers aim to stabilize the yuan, manage exchange rate risks, and strengthen domestic demand. Economists expect the central bank to increase the intensity of monetary policy adjustments in 2025, with potential interest rate cuts of up to 0.5 percentage points and reserve requirement ratio reductions of 0.5 to 1 percentage point. Additionally, China's net gold imports via Hong Kong in November reached a seven-month high, reflecting continued efforts to bolster reserves.