The PBOC said in its Q2 2026 China Monetary Policy Implementation Report that
Middle East tensions lifted international oil and commodity prices and pushed up
inflation in major economies, and recent monetary policy moves or shifts abroad
could spill over to the global economy and financial markets. As of end‑July,
the ECB and BoJ have tightened while the Fed has kept rates unchanged but
signaled hawkishness; the PBOC expects this round of major central bank policy
adjustments to be relatively moderate with smaller spillovers than in past
cycles.
