The People's Bank of China's Monetary Policy Committee called for stronger countercyclical adjustment while maintaining a moderately accommodative monetary policy. Citing weak global growth, trade and geopolitical tensions, and domestic imbalances between strong supply and weak demand, the committee urged closer coordination between monetary and fiscal policy to support stable growth and a reasonable recovery in prices. The committee recommended adjusting monetary policy tools as appropriate to maintain ample liquidity and align growth in money supply and aggregate social financing with economic growth and price objectives. It also backed further reform of the monetary policy operating framework, lower financing intermediation costs, macroprudential monitoring of bond markets and long term yields, and measures to keep the renminbi broadly stable while curbing herd behavior and self-reinforcing expectations. Structural tools should target domestic demand, technological innovation, small businesses and the private economy, while large banks should support the real economy and smaller banks should focus on their core activities and strengthen capital.
2026-09-24Central Bank of the Republic of China
People's Bank of China calls for stronger countercyclical support under moderately accommodative monetary policy
The People's Bank of China's Monetary Policy Committee called for stronger countercyclical support while maintaining a moderately accommodative stance. It recommended ample liquidity, lower financing costs and targeted support for domestic demand, innovation and smaller businesses. The committee also emphasized bond market monitoring and broad renminbi stability.