At its Q2 MPC meeting the PBOC clarified its H2 monetary policy approach. PBOC
Deputy Governor Zou Lan said policy will strengthen countercyclical and
cross‑cycle adjustments based on domestic and external economic and financial
conditions and market developments. Analysts say inflation trends, domestic
growth fundamentals and major economies’ monetary policies will be key
determinants of PBOC operations. With government bond issuance accelerating in
Q3, room for monetary easing may widen to complement fiscal support and bolster
the macro outlook.