PBOC Holds 2026 H2 Work Meeting: Continue Implementing Appropriately Accommodative Monetary Policy

On August 1, the People's Bank of China (PBOC) held its 2026 second-half work meeting. The conference, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the decisions and plans of the CPC Central Committee and the State Council, reviewed work since the start of 2026, analyzed the current situation, and deployed tasks for the next phase. PBOC Party Committee Secretary and Governor Pan Gongsheng attended and delivered remarks. Zhu Hexin, Qu Jishan, Xuan Changneng, Lu Lei, Tao Ling, and Zou Lan also attended.

The meeting concluded that since the beginning of 2026, in the face of changing domestic and international conditions and challenges, the PBOC has conscientiously implemented the arrangements of the Central Economic Work Conference, the Politburo meetings, and the Government Work Report. It systematically, macroscopically, and forward-lookingly planned and advanced its work, introduced a series of monetary and financial policies to support stable economic growth, high-quality development, and the smooth operation of financial markets. It has continuously deepened financial reform and high-level opening-up, effectively safeguarded financial stability and national financial security, and advanced all tasks with vigor and effectiveness.

First, continue implementing appropriately accommodative monetary policy. Comprehensively use a variety of monetary policy tools including reverse repos, medium-term lending facilities, and government bond purchases and sales to provide short-, medium-, and long-term liquidity, maintaining ample liquidity and guiding financial institutions to vigorously support the effective financing needs of the real economy. Improve the short-end interest rate adjustment mechanism, add overnight reverse repo operation varieties, and narrow the temporary overnight repo/reverse repo operation rate corridor. Strengthen interest rate policy implementation and supervision, urge financial institutions to clearly disclose comprehensive loan financing costs, and maintain the basic stability of overall social financing costs. Smooth the transmission mechanism of monetary policy, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

Second, effectively prevent and resolve financial risks in key areas. Steadily promote risk mitigation for small and medium-sized financial institutions. Continue to do a good job in supporting local governments' efforts to resolve debt risks. Implement financial support policies for the stable and healthy development of the real estate market. Strengthen financial market infrastructure development and macro-prudential management. Enhance anti-money laundering supervision and capabilities.

Third, deepen financial reform, opening-up, and international cooperation. Steadily advance the internationalization of the RMB. Deepen bilateral and multilateral monetary and financial cooperation. Improve the management of foreign exchange reserves. Promote the high-quality development of the foreign exchange market and enhance its depth and breadth. Expand the Connect schemes between mainland and Hong Kong financial markets. Steadily promote the two-way opening of financial markets in terms of rules, regulations, management, and standards.

Fourth, improve financial services and management. Deepen financial statistical monitoring and research analysis. Enhance the quality and efficiency of financial services for the real economy. Advance the development of payment and clearing systems. Improve credit reporting systems. Strengthen the protection of financial consumers' rights and interests.

The meeting emphasized that the PBOC system must thoroughly study and implement the spirit of the Third Plenary Session of the 20th CPC Central Committee, reinforce confidence, forge ahead with determination, and strive to accomplish all annual targets and tasks. It called for putting political development in the foremost position, rigorously advancing comprehensive strict Party governance, strengthening the development of high-quality cadres and talent teams, and providing strong financial support for Chinese-style modernization.