People's Bank of China signals continued moderate easing and stronger counter‑cyclical policy

China's central bank monetary policy committee held its Q2 2026 meeting, making modest wording adjustments that reaffirm a moderately loose stance. The committee highlighted a more complex external environment and noted domestic challenges such as supply‑demand imbalances and structural differentiation.

It pledged to keep liquidity ample while enhancing policy foresight, flexibility and targeting. The bank will increase counter‑cyclical and cross‑cycle adjustments, coordinate more closely with fiscal policy, guide large banks to lead, and expand support for domestic demand, technological innovation and small‑and‑medium enterprises.