The central bank: It is recommended to leverage the integrated effect of incremental policies and existing stock policies, and to enhance the forward-looking, flexible, and targeted nature of policymaking.

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China’s People’s Bank of China Monetary Policy Committee convened its regular meeting for the second quarter of 2026. The meeting studied the main thinking for monetary policy in the next phase, and suggested giving full play to the integrated effects of both incremental policies and stock policies, strengthening the forward-looking flexibility and targeted nature of policy-making. Based on domestic and overseas economic and financial conditions and the operation of financial markets, efforts should be made to get the intensity, pace, and timing of policy implementation right. Maintain ample liquidity so that growth in social financing and in money supply matches economic growth and the expected targets for the overall price level. Strengthen guidance on the central bank’s policy interest rates, improve market-based interest rate formation and transmission mechanisms, and bring into play the role of market interest rate pricing self-discipline mechanisms; strengthen the execution and supervision of interest rate policies. Standardize the operating behavior of the credit market, reduce financing intermediary fees, and promote the sustained low level of society’s overall financing cost. From a macroprudential perspective, observe and assess the operation of the bond market, and pay attention to changes in long-term yields. Unblock the transmission mechanism of monetary policy and improve the efficiency of capital use. Enhance resilience in the foreign exchange market, stabilize market expectations, and keep the RMB exchange rate fundamentally stable at a level consistent with reasonable and balanced conditions.
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