Central Bank: Continue to implement a moderately loose monetary policy, leveraging the combined effects of incremental and stock policies

Breaking News from Mars Finance: According to Jintiao, the China People’s Bank Work Conference will be held on January 5-6, 2026. The meeting emphasized continuing to implement a moderately loose monetary policy, leveraging the combined effects of incremental and stock policies, increasing counter-cyclical and cross-cyclical adjustments, enhancing financial services to support high-quality economic development, deepening financial reforms and opening-up at a higher level, strengthening the forward-looking, targeted, and coordinated nature of macro policies, focusing on expanding domestic demand and optimizing supply, preventing and resolving risks, stabilizing social expectations, and creating a favorable monetary and financial environment for stable economic growth, high-quality development, and stable operation of financial markets. This will provide strong financial support for a good start to the “14th Five-Year Plan.”

Additionally, the meeting emphasized that promoting high-quality economic development and a reasonable rise in prices should be key considerations for monetary policy. Flexible and efficient use of various monetary policy tools such as reserve requirement ratio cuts and interest rate reductions should be employed to maintain ample liquidity, keep social financing conditions relatively relaxed, and guide the reasonable growth of total financial volume and credit issuance, ensuring that the scale of social financing, money supply growth, economic growth, and inflation expectations are aligned.

Smooth the transmission mechanism of monetary policy, effectively guide policy interest rates, properly implement and supervise interest rate policies, and promote low overall financing costs for society. Expand the scope of explicit corporate loan financing costs in an orderly manner, and promote explicit personal loan financing costs. Maintain the basic stability of the RMB exchange rate at a reasonable and balanced level, and prevent exchange rate overshoot risks.