(Bloomberg) -- China will cut interest rates and the reserve requirement ratio in a timely manner next year, the 21st Century Business Herald reported, citing Wang Xin, director of the research bureau under the People’s Bank of China.

The central bank will increase the intensity of monetary and credit supply, Wang said at an event on Saturday, according to the report. It has room to further reduce the RRR — the amount of cash banks must hold in reserve — from the current average level of 6.6%, he said. 

Financing conditions for the real economy will also be more relaxed, the report cited Wang as saying. China’s credit expansion unexpectedly slowed in November as loan demand faltered, figures showed Friday, signaling increased challenges to economic growth.

China’s top leaders signaled this week that they would adopt more forceful stimulus to boost growth and put a greater focus on consumption in the year ahead. 

In 2025, China will increase the fiscal deficit ratio and deficit scale as well as issue more ultra long-term special government bonds and local government special bonds, CCTV reported, citing Han Wenxiu, a deputy director at the Office of the Central Financial and Economic Affairs Commission, attending the same event.

Details of more “proactive and promising” macro policies will be introduced at the annual plenary sessions of the National People’s Congress and the Chinese People’s Political Consultative Conference, according to Han. 

He said he expects the economy to grow about 5% this year, in line with the official target. 

(Updates with comments from Han Wenxiu in the last three paragraphs.)

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