China's Central Bank Vows to Maintain Moderately Loose Monetary Policy

PBOC Monetary Policy Panel Sets 2026 Q1 Policy Direction

On March 26, the Monetary Policy Committee of the People’s Bank of China convened its first-quarter 2026 regular meeting—the 112th such session in total. The committee noted that macro policies have grown more proactive, monetary policy stays moderately loose, social financing costs sit near historic lows, and the yuan holds steady around a reasonable equilibrium.

Looking ahead, the PBOC will keep its monetary policy moderately accommodative. It will ramp up both counter-cyclical and cross-cyclical adjustments to keep liquidity abundant, match social financing and money growth with economic and inflation goals, sharpen policy rate guidance, clean up credit market practices, cut down on financing fees, and watch long-term yield shifts through a macro-prudential lens.

Beyond that, the meeting highlighted two key priorities. First, it will leverage structural monetary tools to back domestic demand expansion, tech innovation, and small and medium-sized businesses. Second, it will push forward high-level, two-way opening in the financial sector.