Before the founding of New China, in December 1948, the People's Bank of China was established in Shijiazhuang on the basis of the former North China Bank and began to issue RMB as the legal standard currency. At the beginning of the founding of New China, the unification of the national currency was completed. , established a unified and vertically led national banking system. Under the highly centralized and unified planned economic management system, the People's Bank of China has the dual functions of a central bank and a commercial bank - it is a central bank that performs currency issuance and financial management functions, and it is also engaged in credit, savings, settlement, foreign exchange, etc. Financial institutions with commercial banking activities. Under the traditional planned economic system, currency, credit, and finance occupy a subordinate and secondary position in economic life. Although there are actually problems of this nature related to monetary policy, they do not play a big role in economic development. , and therefore will not become an independent policy. Therefore, before the late 1980s, the term "monetary policy" was rarely mentioned.

In 1978, the Third Plenary Session of the Eleventh Central Committee made major strategic arrangements for reform and opening up. my country began to gradually transform from a planned economic system to a market economic system. At the same time, the financial system also began to move toward diversified institutions and diverse categories. With the development of the central bank, the distinction between the functions of the central bank and specific financial businesses has become increasingly clear. In September 1983, the State Council issued the "Decision on the People's Bank of China to exclusively exercise the functions of the central bank". The People's Bank of China exclusively exercises the functions of the central bank and no longer handles industrial and commercial credit and savings businesses in order to strengthen the centralized management and comprehensive balance of credit funds. Better serve macroeconomic decision-making. From then on, we began to explore and establish a modern monetary policy regulation and management framework. Especially after the promulgation of the "People's Bank of China Law" in 1995, my country basically formed a central bank system in which the People's Bank of China independently implements monetary policies under the leadership of the State Council. Subsequently, in response to the changing new situations, new opportunities and new challenges in the economic and financial fields, and with the continuous deepening of financial system reform, monetary policy has gone through rounds of adjustments and innovations. In 1992, the 14th National Congress of the Communist Party of China established the reform goal of establishing a socialist market economic system. With this as a symbol, our country has entered a new stage of establishing and improving the socialist market economic system. Correspondingly, our country's monetary policy has also There are some new changes. In terms of monetary policy objectives, the State Council’s “Decision on Financial System Reform” in 1993 formally established for the first time that the ultimate goal of monetary policy is to “maintain currency stability and thereby promote economic growth.” The intermediary goal of monetary policy is “money supply.” volume, total credit volume, inter-bank lending rate and bank reserve ratio”. The "People's Bank of China Law" passed in 1995 continued the statement that "the goal of monetary policy is to maintain the stability of the currency value and thereby promote economic growth." During this period, money supply, as the intermediary target of monetary policy, gradually received more attention. The People's Bank of China began to release three levels of money supply data (M0, M1, M2) quarterly since 1994. In terms of monetary policy tools, attention has been paid to the use of indirect tools and internationally accepted policy tools for macro-control. The rediscount business began in October 1994, and rediscount has gradually become a commonly used monetary policy tool. Since then, the central bank has flexibly controlled the amount of money by increasing or decreasing the discount quota, relaxing or tightening rediscount conditions, adjusting the rediscount rate, and selecting rediscount targets. At the same time, the central bank began to conduct open market operations to expand and release money supply and adjust interest rates through the purchase and sale of securities, including foreign exchange open market operations starting in April 1994, treasury bond open market operations starting in April 1996, and later Open market operations of policy financial bonds, central bank financing bonds and other securities. In addition, the existing central bank loan system and deposit reserve system have been further reformed and improved. After the 2008 global financial crisis, the domestic economic situation and the world economic pattern have undergone major and profound changes, which have greatly changed the operating environment of monetary policy. This objectively requires monetary policy to actively adapt and transform. This has led to monetary policy changes. The policy presents some new features. The ultimate goals of monetary policy are diverse and subject to change. Although the "People's Bank of China Law" reflects a certain degree of "single goal" orientation, in recent years, in practice, the ultimate goals pursued by my country's monetary policy are more diverse, including maintaining price stability, promoting economic growth, promoting employment, and maintaining international Maintain a general balance between revenue and expenditure, promote reform and opening up, and promote the development of financial markets, etc. Moreover, under different conditions, the central bank's relative emphasis on different goals will make discretionary adjustments as the domestic and international economic and financial situations change. For example, when inflationary pressure is high, the weight of price stability will be increased; when external shocks come, the weight of economic growth and employment will be increased; when asset prices change significantly, the weight of financial stability will be increased. Second, the intermediary target of monetary policy has changed from quantity-based to price-based. For a long time in the past, the central bank mainly focused on quantitative intermediary targets such as broad money (M2), social financing scale, new loans and their growth rate. As the economic and financial structures become increasingly complex, it becomes increasingly difficult for the central bank to track, monitor, and accurately regulate the amount of money and credit. Moreover, the correlation between the amount of money and credit and economic growth, inflation, and financial stability is also increasing. Gradually weakening, therefore, increasing the necessity and urgency of transforming the intermediary target of monetary policy from quantity-based to price-based.

Before the upper and lower limits on deposit and loan interest rates were relaxed, the price-based intermediary target that the central bank focused on was mainly commercial bank deposit and loan benchmark interest rates; after the relaxation of interest rate controls, the main intermediary target that served as the intermediary target was money market interest rates.