China's Central Bank Pledges Timely Policy Tool Adjustment and Enhanced Financial Support for Real Economy

The People's Bank of China (PBOC) announced it will continue to implement a moderately loose monetary policy, strengthen counter-cyclical adjustment, and make comprehensive and timely use of monetary policy tools in the second half of 2026. The central bank also pledged to maintain ample liquidity, guide financial institutions to enhance credit supply, and promote the high-quality development of a 'technology board' in the bond market. This follows a Politburo meeting acknowledging economic difficulties and calling for accelerated fiscal expenditure and flexible monetary policy.