China's Monetary Policy Shift

The People's Bank of China (PBoC) has announced its intention to adopt a "moderately accommodative monetary policy" in its latest second-quarter report. This strategic move aims to carefully manage the intensity and pace of policy implementation while ensuring ample liquidity in the market to foster a favorable financial environment.

Goals and Measures

Among its key objectives, the PBoC highlighted the promotion of a "reasonable recovery in prices" to maintain them at healthy levels. The bank is also committed to enhancing its monetary policy guidance and transmission mechanism, stabilizing market expectations, and taking decisive action against any behavior that disrupts market order.

Ensuring Financial Stability

Furthermore, the PBoC plans to explore avenues to expand its macroprudential and financial stability functions. This initiative is part of a broader effort to maintain financial market stability and steadfastly prevent systemic financial risks, underscoring the bank's dedication to safeguarding the economy.