People's Bank of China: It will continue to implement a moderately loose monetary policy and step up counter-cyclical and cross-cyclical regulation.

The Monetary Policy Committee of the People's Bank of China (PBoC) held its second-quarter 2026 regular meeting. The meeting analyzed domestic and international economic and financial conditions, noting that the current external environment has grown more complex and volatile, global economic growth momentum remains weak, geopolitical conflicts and economic and trade frictions are frequent, major economies show divergent performance, and uncertainties persist over inflation trends and monetary policy adjustments. China’s economy as a whole remains stable, advancing toward higher-quality development and new growth drivers, with new progress made in high-quality development, though it still faces challenges including strong supply relative to weak demand, structural divergence, and external shocks. The meeting stated that it will continue implementing a moderately loose monetary policy, step up counter-cyclical and cross-cyclical regulation, better leverage the dual functions of monetary policy tools in aggregate and structural terms, strengthen coordination between monetary and fiscal policies, and promote stable economic growth and a reasonable rebound in prices.