China’s cabinet, the State Council, recently announced plans for institutional reforms of the People’s Bank of China, which have profound implications for the central bank’s role in China’s macroeconomic management.

The most notable change in the PBoC’s organisational structure is a newly established Macro-prudential Management Bureau (MMB). According to a statement by the State Council issued in early February, the MMB is tasked to “construct a co-ordination mechanism among development plans