China's central bank is expected to implement significant interest-rate cuts next year, as efforts to boost economic growth and combat deflation intensify.

Major Wall Street banks predict reductions of up to 40 basis points to the People's Bank of China's main policy rate in 2025. This anticipated move would mark the most significant annual decrease since 2015, potentially lowering the seven-day reverse repo rate to 1.1%. Financial analysts have a growing consensus regarding the need for aggressive monetary policy adjustments in response to current economic challenges.