PBOC: Make comprehensive use of and adjust monetary policy tools in a timely manner to keep liquidity abundant
On September 24, 2026, the Monetary Policy Committee of the People’s Bank of China held its third-quarter 2026 meeting (the 114th overall) on September 19. The meeting studied the main thinking for the next stage of monetary policy. It suggested that the integrated effects of incremental and stock policies should be brought into play; to enhance the foresight, flexibility and targeting of policy; and to, based on the domestic and international economic and financial situation and the operation of financial markets, properly handle the intensity, pace and timing of policy implementation. Make comprehensive use of and adjust monetary policy tools in a timely manner to keep liquidity abundant, so that the growth of social financing and money supply matches the economic growth and the expected targets for the overall price level. Promote reform and improvement of the monetary policy operational framework. Standardize credit market operating practices, reduce financing intermediary fees, and help keep overall social financing costs operating at a low level. From a macro-prudential perspective, observe and assess the operation of the bond market, and pay attention to changes in long-term yields. Ensure the smooth transmission mechanism of monetary policy and improve the efficiency of fund use. Adhere to the market’s decisive role in the formation of the exchange rate, enhance the resilience of the foreign-exchange market, and stabilize market expectations. Meanwhile, prevent the “herding effect” in the market and the self-reinforcement of irrational expectations, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.
On September 24, 2026, the Monetary Policy Committee of the People’s Bank of China held its third-quarter 2026 meeting (the 114th overall) on September 19. The meeting studied the main thinking for the next stage of monetary policy. It suggested that the integrated effects of incremental and stock policies should be brought into play; to enhance the foresight, flexibility and targeting of policy; and to, based on the domestic and international economic and financial situation and the operation of financial markets, properly handle the intensity, pace and timing of policy implementation. Make comprehensive use of and adjust monetary policy tools in a timely manner to keep liquidity abundant, so that the growth of social financing and money supply matches the economic growth and the expected targets for the overall price level. Promote reform and improvement of the monetary policy operational framework. Standardize credit market operating practices, reduce financing intermediary fees, and help keep overall social financing costs operating at a low level. From a macro-prudential perspective, observe and assess the operation of the bond market, and pay attention to changes in long-term yields. Ensure the smooth transmission mechanism of monetary policy and improve the efficiency of fund use. Adhere to the market’s decisive role in the formation of the exchange rate, enhance the resilience of the foreign-exchange market, and stabilize market expectations. Meanwhile, prevent the “herding effect” in the market and the self-reinforcement of irrational expectations, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.