Translated by Claude, edited by Sinocism.com.

The People's Bank of China Monetary Policy Committee held its second quarter 2026 (113th overall) regular meeting on July 4.

中国人民银行货币政策委员会2026年第二季度（总第113次）例会于7月4日召开。

The meeting held that since the start of this year macroeconomic policy has been more proactive, monetary policy has remained moderately accommodative, counter-cyclical and cross-cyclical adjustment has been strengthened, and a range of monetary policy tools have been used in combination to create a monetary and financial environment suited to the economy's continued improvement. The efficacy of the loan prime rate reform has continued to be released, the market-based deposit rate adjustment mechanism has played its role effectively, the efficiency of monetary policy transmission has strengthened, and social financing costs are at historically low levels. Foreign exchange market supply and demand are basically balanced, the RMB exchange rate floats in both directions, and it has remained basically stable at a reasonable and balanced level. Financial markets have run smoothly overall.

会议认为，今年以来宏观政策更加积极有为，货币政策保持适度宽松，强化逆周期和跨周期调节，综合运用多种货币政策工具，为经济持续向好向优创造适宜的货币金融环境。贷款市场报价利率改革效能持续释放，存款利率市场化调整机制作用有效发挥，货币政策传导效率增强，社会融资成本处于历史较低水平。外汇市场供求基本平衡，人民币汇率双向浮动，在合理均衡水平上保持基本稳定。金融市场总体运行平稳。

The meeting analyzed the domestic and international economic and financial situation and held that the current external environment is more complex and volatile, momentum for world economic growth is weak, geopolitical conflicts and economic and trade frictions are frequent, the economic performance of major economies is diverging, and there is uncertainty over inflation trends and monetary policy adjustments. China's economy is running smoothly overall and moving toward the new and the better, and high-quality development has achieved new results, but it still faces problems and challenges including strong supply and weak demand, structural divergence, and external shocks. It is necessary to continue implementing a moderately accommodative monetary policy, step up counter-cyclical and cross-cyclical adjustment, better bring into play the dual aggregate and structural functions of monetary policy tools, strengthen the coordination of monetary and fiscal policy, and promote steady economic growth and a reasonable recovery in prices.

会议分析了国内外经济金融形势，认为当前外部环境更加复杂多变，世界经济增长动能疲弱，地缘冲突和经贸摩擦多发频发，主要经济体经济表现分化，通胀走势和货币政策调整存在不确定性。我国经济运行总体平稳、向新向优，高质量发展取得新成效，但仍面临供强需弱、结构分化、外部冲击等问题和挑战。要继续实施适度宽松的货币政策，加大逆周期和跨周期调节力度，更好发挥货币政策工具的总量和结构双重功能，加强货币财政政策协同配合，促进经济稳定增长和物价合理回升。

The meeting studied the main thinking on monetary policy for the next phase, and recommended bringing out the integrated effects of incremental policy and existing policy, enhancing the forward-looking nature, flexibility, and targeting of policy, and, based on the domestic and international economic and financial situation and the operation of financial markets, appropriately managing the intensity, pace, and timing of policy implementation. Keep liquidity ample and make the growth of aggregate financing to the real economy and the money supply match the projected targets for economic growth and the general price level. Strengthen the guidance of the central bank's policy interest rate, improve the market-based interest rate formation and transmission mechanism, bring into play the role of the market interest rate pricing self-discipline mechanism, and strengthen the implementation and supervision of interest rate policy. Regulate the operating conduct of the credit market, lower intermediary financing costs, and promote low-level operation of overall social financing costs. Observe and assess the operation of the bond market from a macroprudential perspective, and pay attention to changes in long-term yields. Keep the monetary policy transmission mechanism unobstructed and raise the efficiency of capital use. Enhance the resilience of the foreign exchange market, stabilize market expectations, and keep the RMB exchange rate basically stable at a reasonable and balanced level.

会议研究了下阶段货币政策主要思路，建议发挥增量政策和存量政策集成效应，增强政策前瞻性灵活性针对性，根据国内外经济金融形势和金融市场运行情况，把握好政策实施的力度、节奏和时机。保持流动性充裕，使社会融资规模、货币供应量增长同经济增长、价格总水平预期目标相匹配。强化央行政策利率引导，完善市场化利率形成传导机制，发挥市场利率定价自律机制作用，加强利率政策执行和监督。规范信贷市场经营行为，降低融资中间费用，促进社会综合融资成本低位运行。从宏观审慎的角度观察、评估债市运行情况，关注长期收益率的变化。畅通货币政策传导机制，提高资金使用效率。增强外汇市场韧性，稳定市场预期，保持人民币汇率在合理均衡水平上的基本稳定。

The meeting pointed out that large banks should be guided to play their role as the main force in financial services for the real economy, that small and medium-sized banks should be pushed to focus on their main responsibilities and main business, and that banks' capital strength should be enhanced. Make good use of all types of structural monetary policy tools, optimize tool management, do a solid job on the "five major articles" of finance, and strengthen financial support for key areas such as expanding domestic demand, scientific and technological innovation, and micro, small, and medium-sized enterprises. Continue to provide good financial services in support of the development and growth of the private economy. Maintain the stable operation of financial markets. Earnestly advance high-standard two-way opening of the financial sector, and improve the capacity for economic and financial management and for risk prevention and control under conditions of opening.

会议指出，要引导大型银行发挥金融服务实体经济主力军作用，推动中小银行聚焦主责主业，增强银行资本实力。用好各类结构性货币政策工具，优化工具管理，扎实做好金融"五篇大文章"，加强对扩大内需、科技创新、中小微企业等重点领域的金融支持。持续做好支持民营经济发展壮大的金融服务。维护金融市场稳定运行。切实推进金融高水平双向开放，提高开放条件下经济金融管理能力和风险防控能力。

The meeting stressed the need to take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guide, to fully implement the spirit of the Fourth Plenum of the 20th Party Congress, the Central Economic Work Conference, and the National Two Sessions, and, in accordance with the decisions and arrangements of the Party Central Committee and the State Council, to firmly grasp the top task of high-quality development, solidly advance Chinese modernization, fully, accurately, and comprehensively implement the new development philosophy, and accelerate the building of the new development pattern. Coordinate the relationship between aggregate supply and aggregate demand, work to expand domestic demand and optimize supply, improve the quality of the incremental and put existing stock to good use, strengthen the internal driving forces of economic development, further strengthen the domestic great circulation, improve the domestic-international dual circulation, and continuously consolidate and expand the momentum of steady economic improvement.

会议强调，要以习近平新时代中国特色社会主义思想为指导，全面贯彻落实党的二十届四中全会、中央经济工作会议和全国两会精神，按照党中央、国务院的决策部署，牢牢把握高质量发展首要任务，扎实推进中国式现代化，完整准确全面贯彻新发展理念，加快构建新发展格局。统筹好总供给和总需求的关系，着力扩大内需、优化供给，做优增量、盘活存量，增强经济发展内生动力，进一步做强国内大循环，做优国内国际双循环，不断巩固拓展经济稳中向好势头。

This meeting was chaired by People's Bank of China Governor and Monetary Policy Committee Chairman Pan Gongsheng, and was attended by Monetary Policy Committee members Li Chunlin, Liao Min, Xuan Changneng, Zou Lan, Wu Qing, Kang Yi, Zhu Hexin, Gu Shu, Wang Yiming, Huang Yiping, and Huang Haizhou. Xu Shouben and Ding Xiangqun were excused for official business. Responsible comrades from the People's Bank of China's Hebei Provincial Branch, Hubei Provincial Branch, Guangdong Provincial Branch, and Qinghai Provincial Branch attended the meeting as non-voting participants.

本次会议由中国人民银行行长兼货币政策委员会主席潘功胜主持，货币政策委员会委员李春临、廖岷、宣昌能、邹澜、吴清、康义、朱鹤新、谷澍、王一鸣、黄益平、黄海洲出席会议。徐守本、丁向群因公务请假。中国人民银行河北省分行、湖北省分行、广东省分行、青海省分行负责同志列席会议。