Deputy Governor of the People's Bank of China, Xuanchang Neng, attended the annual economic conference of the Central Bank of Iceland and the regular meeting of the President of the Bank for International Settlements.

From May 9th to 12th, 2025, People's Bank of China Vice Governor Xuanchang Neng attended the annual economic conference of the Central Bank of Iceland in Reykjavik and the Bank for International Settlements President's meeting in Basel, Switzerland. Xuanchang Neng delivered a keynote speech on the evolution of China's monetary policy framework at the annual economic conference of the Central Bank of Iceland. He pointed out that in recent years, China's economic and financial structure has undergone profound changes, and the People's Bank of China has been continuously promoting the transformation of the monetary policy framework. Firstly, the emphasis has shifted from quantity targets to the use of price-based control tools such as interest rates. Secondly, the further improvement of the market-based interest rate control mechanism, with the 7-day reverse repurchase operation rate in the open market being the main policy rate. Thirdly, the enrichment of the monetary policy toolbox, including the inclusion of bond transactions in the secondary market in the toolbox. Fourthly, the establishment of a structural monetary policy tool system, including arrangements to maintain capital market stability. In addition, the People's Bank of China continues to enhance the transparency of monetary policy, establishing a credible, normalized, and institutionalized policy communication mechanism for effective policy communication and expectation guidance. Xuanchang Neng also answered questions from the audience. During the BIS President's meeting, Xuanchang Neng exchanged views with attending central bank governors on global economic and financial situations, business investment in uncertain environments, regional economic and financial integration in a fragmented global context, and inflation expectations in the household sector.