China's central bank pledges moderately loose monetary policy for second half of 2026
China’s central bank has announced that it will maintain a moderately loose monetary policy throughout the second half of 2026, signalling continued efforts to underpin economic stability and foster steady growth.
2nd August 2026 – (Beijing) China’s central bank has announced that it will maintain a moderately loose monetary policy throughout the second half of 2026, signalling continued efforts to underpin economic stability and foster steady growth. In a statement issued on Sunday following its mid-year work conference, the People’s Bank of China (PBOC) said it would intensify counter-cyclical adjustments and take pragmatic steps to support sustained and improving economic performance. The bank pledged to deploy a broad range of policy instruments and refine them as circumstances require. The PBOC said it would ensure sufficient liquidity in the financial system and encourage lenders to optimise the structure of credit supply. It also aims to keep the expansion of social financing and the money supply broadly in line with the country’s anticipated economic growth and price objectives. Among its priorities for the remainder of the year, the central bank highlighted plans to advance the high-quality development of a dedicated “technology board” within the bond market. It intends to continue the measured rollout of risk-sharing mechanisms for bonds linked to technological innovation and private enterprises, while exploring improved data-sharing and integrated information use within the science and technology finance sector. The bank further committed to strengthening credit support frameworks for private firms and small and medium-sized enterprises. Enhancing financial services for SMEs will remain a focus in the coming months, as policymakers seek to bolster confidence and reinforce the foundations of economic recovery.