PBOC continues to implement moderately accommodative policy to promote stable economic growth.

The Monetary Policy Committee of the People’s Bank of China recently convened its second-quarter regular meeting, noting that efforts must continue to implement a moderately accommodative monetary policy, bolster the strength of counter-cyclical and cross-cyclical adjustment, better leverage the dual role of monetary policy instruments in both overall quantity and structural aspects, strengthen coordination and cooperation between monetary and fiscal policies, and promote stable and sustained economic growth as well as a reasonable rebound in prices.

A press release posted on the PBOC’s official website said that the operation of the bond market should be observed and assessed from a macroprudential perspective, with attention paid to changes in long-term yields. The release also called for enhancing the resilience of the foreign exchange market, stabilizing market expectations, and maintaining the basic stability of the renminbi exchange rate at a reasonable and balanced level.

The press release emphasized that it is recommended to fully play the integrated effect of incremental policies and existing policy measures, and to enhance the forward-looking, flexible, and targeted nature of policy making.

At the same time, ensure ample liquidity so that the growth of the scale of social financing, the growth of money supply, and economic growth and the expected targets for the overall price level are aligned. Strengthen the central bank’s policy interest rate guidance, improve the market-based interest rate formation and transmission mechanism, and give full play to the market interest rate pricing self-regulatory mechanism.

In addition, make good use of various structural monetary policy tools, optimize the management of these tools, and enhance financial support for key areas such as expanding domestic demand, technological innovation, and small and medium-sized enterprises.