PBOC's MPC met for its Q2 2026 review and said the external environment has
grown more complex: global growth momentum is weak, geopolitical conflicts and
trade frictions are frequent, major economies are diverging, and inflation paths
and policy adjustments are uncertain. Domestically the economy is broadly stable
and shifting toward higher‑quality growth but still faces weak demand versus
strong supply, structural divergence, and external shocks. The committee called
for continuing a moderately loose monetary stance, intensifying countercyclical
and cross‑cycle adjustments, deploying both aggregate and structural monetary
tools, and strengthening monetary‑fiscal coordination to support stable growth
and a reasonable rebound in prices.
