People's Bank of China Continues to Implement Moderately Loose Monetary Policy

On July 8, the Monetary Policy Committee of the People's Bank of China held its regular meeting for the second quarter of 2026 to analyze the domestic and international economic and financial situation. The meeting pointed out that the current external environment is complex and changeable, with weak momentum in global economic growth, frequent geopolitical conflicts and trade frictions, and divergent economic performances among major economies, leading to uncertainties in inflation trends and monetary policy adjustments. The overall operation of China's economy remains stable, moving towards new and better high-quality development with new achievements, but it still faces challenges such as strong supply and weak demand, structural differentiation, and external shocks. The meeting decided to continue implementing a moderately loose monetary policy, increase counter-cyclical and cross-cyclical adjustment efforts, leverage the dual functions of monetary policy tools in terms of both quantity and structure, strengthen the coordination between monetary and fiscal policies, and promote stable economic growth and a reasonable rebound in prices.