Xuan emphasized that central bankers are currently grappling with unprecedented uncertainties related to geopolitics, de-globalization, and increased volatility in global financial markets.

This alarming level of indebtedness is further highlighted by the M2 money supply to GDP ratio exceeding 200% and the macro leverage ratio surpassing 300%.

During the annual Boao Forum on March 27, 2025, Xuan Changneng, deputy governor of the People's Bank of China, revealed that the country's total debt has now surpassed 300% of GDP and is expected to continue rising.

The central bank is considering cutting the reserve requirement ratio and interest rates when deemed appropriate, influenced by both domestic and international economic conditions.

In response to these economic pressures, particularly from rising U.S. tariffs, analysts predict that the People's Bank of China may implement further policy easing.

Despite recent stability in key interest rates and reserve requirements, the People's Bank of China remains committed to an appropriately loose monetary policy, indicating there is ample room for adjustments.