China's Top Leaders Adjust Monetary Policy Stance for the First Time in 14 Years

After 14 years, China's top leaders have changed their stance on monetary policy. The Politburo, comprised of the 24 highest-ranking officials of the ruling Communist Party and led by President Xi Jinping, announced that it will adopt a "moderately loose" strategy next year, seen as a sign of greater easing welcomed by investors eager for more stimulus. Officials also stated that they will implement a "more proactive" fiscal policy, having previously noted that the group's fiscal policy would be "proactive." This announcement followed comments from the official Xinhua News Agency on Friday, which indicated that the country has room to increase borrowing and fiscal deficits by 2025.