Central Bank: Continue to implement a moderately loose monetary policy, leveraging the combined effects of incremental and stock policies

PANews January 6th News, according to Jintiao reports, the 2026 People’s Bank of China Work Conference was held on January 5-6. The meeting emphasized continuing to implement a moderately relaxed monetary policy, leveraging the integrated effects of incremental and stock policies, increasing countercyclical and cross-cyclical regulation efforts, enhancing the quality and efficiency of financial services to the real economy, deepening financial reforms and opening-up at a higher level, strengthening the forward-looking, targeted, and coordinated nature of macro policies, focusing on expanding domestic demand and optimizing supply, preventing and resolving risks, stabilizing social expectations, and creating a favorable monetary and financial environment for stable economic growth, high-quality development, and stable operation of financial markets. This aims to provide strong financial support for a good start to the “14th Five-Year Plan.”

Additionally, the meeting emphasized that promoting high-quality economic development and a reasonable rise in prices should be key considerations of monetary policy. It advocates flexible and efficient use of various monetary policy tools such as reserve requirement ratio cuts and interest rate reductions, maintaining ample liquidity, keeping social financing conditions relatively relaxed, guiding the reasonable growth of total financial volume and balanced credit issuance, so that the scale of social financing and money supply growth align with economic growth and inflation expectations. It also calls for smoothing the transmission mechanism of monetary policy, effectively guiding policy interest rates, properly implementing and supervising interest rate policies, and promoting low-cost comprehensive financing for society. The expansion of the scope of explicit corporate loan comprehensive financing costs should be orderly advanced, and efforts should be made to promote explicit personal loan comprehensive financing costs. The RMB exchange rate should remain basically stable at a reasonable and balanced level, with risks of exchange rate overshoot being prevented.