The People’s Bank of China said on Wednesday that it will continue to apply an appropriately accommodative monetary policy, following the latest quarterly meeting of its monetary policy committee, where the committee deliberated on the policy direction for the coming months.
The country’s central bank will strengthen counter and cross-cyclical adjustments, better leverage the dual functions of monetary policy tools in both aggregate and structural terms, and enhance coordination between monetary and fiscal policies to promote steady economic growth and a reasonable rebound in prices, it said.
The meeting also called for strengthening the guiding role of the central bank’s policy interest rates and improving the market-based interest rate formation and transmission mechanism.
It urged efforts to regulate business activities in the credit market, lower intermediary financing charges, and keep overall social financing costs at a low level.
The meeting stressed the need to observe and assess the operation of the bond market from a macro-prudential perspective and pay close attention to changes in long-term bond yields.
It also emphasized improving the monetary policy transmission mechanism and enhancing the efficiency of fund utilization.
Efforts should be made to increase the resilience of the foreign exchange market, stabilize market expectations, and keep the RMB exchange rate generally stable at an adaptive, balanced level.
It also vowed financial support for key areas such as expanding domestic demand, scientific and technological innovation, and micro, small and medium-sized enterprises.
Efforts should continue to improve financial services supporting the development of the private economy, it said.
The central bank injected a net 10 billion yuan ($1.47 billion) of liquidity through open-market government bond purchases and sales in June. According to the central bank’s data, cumulative net injections via this channel during the first half of 2026 amounted to 300 billion yuan.
In its first-quarter monetary policy implementation report, the PBOC said it has been conducting government bond operations on a routine basis since the start of the year, flexibly adjusting the size of operations in response to base-money supply needs and bond-market conditions.
XINHUA-CHINA DAILY
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