The People's Bank of China stated that it will continue to implement a moderately loose monetary policy, leveraging the combined effects of incremental and existing policies.

PANews reported on January 6th that, according to Jinshi, the 2026 People's Bank of China (PBOC) Working Conference was held from January 5th to 6th. The conference emphasized continuing to implement a moderately loose monetary policy, leveraging the integrated effects of incremental and existing policies, increasing counter-cyclical and cross-cyclical adjustments, improving the quality and efficiency of financial services for the high-quality development of the real economy, deepening financial reform and higher-level opening-up, enhancing the forward-looking, targeted, and coordinated nature of macro policies, focusing on expanding domestic demand and optimizing supply, preventing and resolving risks, and stabilizing social expectations. This will create a favorable monetary and financial environment for stable economic growth, high-quality development, and the stable operation of the financial market, providing strong financial support for a good start to the 15th Five-Year Plan.

Furthermore, the meeting emphasized that promoting high-quality economic development and a reasonable recovery in prices should be key considerations for monetary policy. It called for the flexible and efficient use of various monetary policy tools, such as reserve requirement ratio cuts and interest rate cuts, to maintain ample liquidity, relatively loose social financing conditions, and guide reasonable growth in total financial volume and balanced credit allocation, ensuring that the growth of social financing and money supply matches the expected targets for economic growth and the overall price level. The meeting stressed the need to smooth the monetary policy transmission mechanism, leverage the guiding role of policy interest rates, ensure the effective implementation and supervision of interest rate policies, and promote low overall social financing costs. It also called for the orderly expansion of the coverage of disclosed comprehensive financing costs for corporate loans and the promotion of disclosed comprehensive financing costs for personal loans. Finally, the meeting emphasized maintaining the basic stability of the RMB exchange rate at a reasonable and balanced level and preventing the risk of exchange rate overshooting.