China's central bank will maintain moderately loose social financing conditions and guide reasonable growth in total financial volume and balanced credit allocation in 2026 to boost high-quality economic development, said the bank's officials.
The People's Bank of China (PBOC) on Tuesday said that it will continue to implement a moderately loose monetary policy in 2026, using tools such as reserve requirement ratio and interest rate cuts to maintain ample liquidity.
The central bank will take high-quality economic development and a reasonable rebound in prices as key monetary policy objectives, it said in a statement released after its annual work conference, which outlined key tasks for this year.
PBOC officials said that the central bank will take promoting stable economic growth and reasonable price recovery as important considerations in monetary policy, and will flexibly and efficiently use a variety of monetary policy tools such as reserve requirement ratio cuts and interest rate cuts to maintain ample liquidity.
"[In 2026], the growth of total social financing and money supply will be aligned with the expected targets for economic growth and the general price level. In 2025, financing methods other than loans, such as bonds, accounted for more than 50 percent of total social financing, and their growth rate is expected to exceed that of total social financing in 2026," said Xie Guangqi, head of the Monetary Policy Department of the PBOC.
The central bank will focus on improving the quality and efficiency of financial services for the high-quality development of the real economy, improving the system of structural monetary policy tools, and strengthening financial support for key areas such as expanding domestic demand, technological innovation, and small and micro enterprises, said PBOC officials.
"We will make full use of structural monetary policy tools, focusing on supporting the expansion of domestic demand, boosting consumption and activating effective investment. Focus on key areas and weak links such as technology innovation-driven development, vigorous support for the private economy, comprehensive green transformation, promotion of urban-rural integration and mountain-sea cooperation. We will increase the innovation of financial products and services and continuously improve the suitability and effectiveness of financial support," said Zhang Qingfang, director of the PBOC Fujian Branch.
China's central bank to support high-quality economic development with moderately loose monetary policy in 2026
