People's Bank of China Monetary Policy Implementation Report: Continue to Effectively Implement a Moderately Easing Monetary Policy

Gold Finance reports that on May 11th, the People’s Bank of China released the first quarter 2026 monetary policy implementation report.
It mentions continuing to implement a moderately easing monetary policy effectively.
Enhance policy foresight, flexibility, and targeting, based on domestic and international economic and financial conditions and financial market operations,
grasp the strength, rhythm, and timing of policy implementation, strengthen coordination between monetary and fiscal policies,
smooth the transmission mechanism of monetary policy, and promote stable economic growth and reasonable price level recovery.
Flexibly use various monetary policy tools to maintain ample liquidity and relatively relaxed social financing conditions,
guide the reasonable growth of total financial volume and balanced credit deployment,
so that the scale of social financing and money supply growth align with economic growth and inflation expectations.
Further improve the interest rate regulation framework, strengthen the guidance of the central bank’s policy interest rate,
improve the market-oriented interest rate formation and transmission mechanism,
play the role of market interest rate self-discipline in pricing,
strengthen the implementation and supervision of interest rate policies, reduce banks’ liability costs,
guide financial institutions to improve interest rate pricing capabilities, and promote low operating costs for social financing.
Continue to deepen the work on explicit comprehensive financing costs for corporate loans.
Make good use of both total and structural functions of monetary policy tools,
utilize various structural monetary policy instruments, optimize tool management,
solidly implement the “Five Major Articles” of finance,
strengthen financial support for expanding domestic demand, technological innovation, and small and micro enterprises.
Adhere to a managed floating exchange rate system based on market supply and demand, with reference to a basket of currencies,
maintain exchange rate flexibility, and leverage the exchange rate’s role in macroeconomic regulation and automatic stabilizers of the balance of payments,
implement comprehensive measures, enhance the resilience of the foreign exchange market,
stabilize market expectations, prevent exchange rate overshoot risks, and keep the RMB exchange rate basically stable at a reasonable and balanced level.
Expand and enrich the macroprudential and financial stability functions of the central bank,
improve the macroprudential and financial stability management toolbox,
maintain the smooth operation of financial markets, and firmly guard against systemic financial risks.