Central Bank governor: Moderately loose monetary policy remains in 2026

China's central bank on Friday said it will continue implementing a moderately loose monetary policy in 2026, pledging to support stable economic growth and guide prices toward a reasonable recovery.

A press conference was held in Beijing during the ongoing Two Sessions – the annual meetings of China's top legislature and top political advisory body – where senior officials answered questions from reporters concerning China's economy.

When asked about monetary policy in the year 2026, Pan Gongsheng, governor of the People's Bank of China, said the central bank will use multiple monetary policy tools including the reserve requirement ratio (RRR) cuts and interest rate reductions in order to create a favorable monetary and financial environment for a strong start to the 15th Five-Year Plan (2026–2030).

Earlier this year, the central bank announced several adjustments to its structural monetary policy tools, Pan said. These include lowering interest rates on such tools by 0.25 percentage points, expanding the scale and scope of funding and establishing a dedicated 1 trillion yuan ($144 billion) re-lending facility specifically for private enterprises to strengthen financial support for small and medium-sized firms.

(Cover: The press center for the fourth session of the 14th National People's Congress holds a press conference on the country's economy in Beijing, March 6, 2026. /CFP)

(With input from Xinhua)