China's central bank on Monday said it will continue to focus on the primary task of high-quality development and implement a moderately loose monetary policy. 

In its report of the monetary policy implementation in the first quarter of 2026, the People's Bank of China (PBOC) said it will calibrate the strength, pace and timing of policy measures in response to evolving domestic and global economic and financial conditions, as well as market developments.

The PBOC said it will continue to implement a moderately loose monetary policy since the beginning of the quarter, strengthened counter-cyclical and cross-cyclical regulation and comprehensively utilized various monetary policy tools such as reverse repos, medium-term lending facilities, and treasury bond trading operations, and kept liquidity abundant.

It has kept the overall social financing cost at a low level, PBOC said in the report.

It cut the interest rates of structural monetary policy tools by 0.25 percentage point. The central bank also increased the relending quota for agriculture and small businesses and technology sectors.

The effects of moderately loose monetary policy continue to be felt by the economy, said the PBOC.

The total volume of financing has grown reasonably. By the end of March, the outstanding total social financing increased by 7.9% year on year, while broad money supply (M2) rose by 8.5% yearly. Social financing conditions were relatively accommodative, PBOC said, with the overall social financing cost at a historically low level. The interest rates for new corporate loans and new personal housing loans issued in March were both around 3.1%.