FINANCE

China Pledges Moderately Loose Monetary Policy to Support Growth

Published: Mar. 6, 2026 4:26 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Photo: VCG

China will maintain a moderately loose monetary policy in 2026 and expand the use of structural tools to support economic recovery, Premier Li Qiang said Thursday.

Policymakers will flexibly use instruments including reserve requirement cuts and interest rate reductions, aiming to keep money supply and social financing growth aligned with economic expansion and expected price levels, Li said in the annual government work report.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

China will keep a moderately loose monetary policy in 2026, using tools like reserve requirement and interest rate cuts.
Structural monetary policy instruments will be expanded to guide credit toward targeted sectors and lower business financing costs.
Measures include stabilizing the property market, addressing local government debt, supporting affordable housing, and managing risks at small and midsize financial institutions.

AI generated, for reference only