At the 2026 China Development Forum, PBOC Governor Peng Gongsheng sent a clear message about the future direction of monetary policy. He emphasized that the central bank will maintain a moderately loose stance, ensuring sufficient and well-calibrated liquidity to support steady economic momentum.
A Full Toolkit to Drive Economic Resilience
To navigate evolving domestic and global conditions, the central bank will deploy a mix of policy instruments—adjusting reserve requirement ratios, refining policy interest rates, and conducting flexible open market operations to enhance precision and forward-looking guidance.
- Lowering reserve ratios to release long-term funding and boost lending capacity
- Guiding market rates to gradually decline, easing financing burdens for businesses
- Strengthening counter-cyclical measures to safeguard financial stability
Peng noted that while recovery is underway, the foundation for growth remains fragile. Monetary policy will increasingly align with fiscal and industrial initiatives to drive sustainable, high-quality development.