The PBOC's MPC met on July 4 for its Q2 2026 (113th) session and recommended
integrating incremental and stock policy measures while strengthening
forward-looking guidance, flexibility and targeting. The committee said policy
intensity, pace and timing should be calibrated to domestic and external
economic and financial conditions and market developments. It called for
maintaining ample liquidity so aggregate social financing and money-supply (M2)
growth align with economic growth and price-level expectations. The MPC urged
stronger policy-rate guidance, improved market-based rate formation and
transmission, greater market-rate pricing discipline, and tighter execution and
supervision of interest-rate policy.
