Central Bank of China: Continue to implement moderately loose monetary policy and increase countercyclical adjustments

China News Service, Beijing, September 24th: The official website of the Central Bank of China announced on the 24th that the 2026 third quarter regular meeting of the Monetary Policy Committee of the Central Bank of China was held recently. The People's Bank of China stated that it will continue to implement a moderately loose monetary policy, increase countercyclical adjustments, better utilize the dual functions of monetary policy tools in terms of total volume and structure, strengthen the coordination of monetary and fiscal policies, and promote stable economic growth and a reasonable recovery in prices.

The meeting analyzed the domestic and international economic and financial situations and believed that the current external environment is more complex and changeable, with weak world economic growth momentum, frequent geopolitical conflicts and economic and trade frictions, divergent economic performance of major economies, and uncertainties in inflation trends and monetary policy adjustments. China's economy is generally operating stably, with new momentum, improved structure, and new results in high-quality development. However, it still faces problems and challenges such as strong supply and weak demand, structural differentiation, and external shocks.

Regarding the main ideas for monetary policy in the next stage, the meeting recommended giving full play to the integrated effect of incremental policies and existing policies, enhancing the forward-looking flexibility and pertinence of policies, and grasping the intensity, rhythm and timing of policy implementation based on the domestic and international economic and financial situations and financial market operations.

The meeting also emphasized the need to uphold the decisive role of the market in the formation of exchange rates, enhance the resilience of the foreign exchange market, stabilize market expectations, prevent the market's "herding effect" and the self-reinforcement of irrational expectations, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

The meeting pointed out that it is necessary to guide large banks to play the main role of financial services in the real economy, promote small and medium-sized banks to focus on their main responsibilities and main businesses, and enhance bank capital strength. Make good use of various structural monetary policy tools, constantly improve the design and management of tools, solidly implement the "five major articles" of finance (tech finance, green finance, inclusive finance, pension finance, digital finance), and strengthen financial support for key areas such as expanding domestic demand, technological innovation, small and medium-sized enterprises, and the construction of the "six networks" (water network, new power grid, computing power network, new generation communication network, urban underground pipe network, and logistics network).