The People's Bank of China released the China Monetary Policy Implementation Report for the second quarter of 2026.

Continue to implement a moderately loose monetary policy. Enhance the forward-looking, flexible, and targeted nature of the policy. Based on the domestic and international economic and financial situation as well as the operation of the financial markets, accurately gauge the intensity, pace, and timing of policy implementation. Strengthen the coordination with fiscal policy to support stable economic growth, high-quality development, and the smooth operation of financial markets. Utilize and timely adjust monetary policy tools comprehensively, maintain ample liquidity and relatively loose social financing conditions, and guide the growth of social financing scale and money supply to align with economic growth and the overall price level expectations. Steadily and orderly promote the reform and improvement of the monetary policy operation framework, better guiding the short-end interest rates in the money market to operate smoothly around the policy interest rate. Leverage the self-discipline mechanism of market interest rate pricing, strengthen the implementation and supervision of interest rate policies, promote the diversification of loan pricing benchmarks, and guide financial institutions to improve their interest rate pricing capabilities. Continuously deepen the work on clarifying the comprehensive financing costs of corporate loans, reduce intermediary financing costs, and promote low-level operation of the comprehensive financing costs in society. Effectively leverage the dual functions of the total amount and structure of monetary policy tools, implement the series of monetary and financial policies introduced at the beginning of the year, continuously improve tool design and management, solidly accomplish the "five key tasks" of finance, and strengthen financial support for key areas such as expanding domestic demand, technological innovation, and small and micro enterprises. Adhere to a market supply-demand-based approach, adjust with reference to a basket of currencies, manage a floating exchange rate system, maintain exchange rate flexibility, and utilize the exchange rate as a macroeconomic and automatic stabilizer for the balance of payments. Implement comprehensive policies to enhance the resilience of the foreign exchange market, stabilize market expectations, prevent excessive fluctuations in the exchange rate, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. Expand and enrich the macro-prudential and financial stability functions of the central bank, innovate financial tools, maintain the smooth operation of financial markets, and firmly safeguard against systemic financial risks.