The 2026 People's Bank of China working conference was held from January 5 to 6. The conference emphasized continuing to implement a moderately loose monetary policy. The central bank emphasizes promoting high-quality economic development and reasonable price recovery as important considerations in monetary policy, and making flexible and efficient use of various monetary policy tools such as interest rate cuts to maintain abundant liquidity. Wang Qing, chief macro analyst at Dongfang Jincheng, said that in 2026, the central bank will mainly guide corporate and residents' loan interest rates downward by lowering policy interest rates, structural monetary policy instrument interest rates, and personal housing provident fund loan interest rates. “There is room for reduction in residential mortgage interest rates, consumer loan interest rates, and operating loan interest rates in 2026, and government and corporate bond financing costs will follow suit.” Wang Qing predicts that in 2026, the central bank will cut interest rates twice, by 0.2 to 0.3 percentage points, or 1-2 times, by 0.5 to 1 percentage point. The focus can be on whether the cut can be implemented before the Spring Festival.

The 2026 People's Bank of China working conference was held from January 5 to 6. The conference emphasized continuing to implement a moderately loose monetary policy. The central bank emphasizes promoting high-quality economic development and reasonable price recovery as important considerations in monetary policy, and making flexible and efficient use of various monetary policy tools such as interest rate cuts to maintain abundant liquidity. Wang Qing, chief macro analyst at Dongfang Jincheng, said that in 2026, the central bank will mainly guide corporate and residents' loan interest rates downward by lowering policy interest rates, structural monetary policy instrument interest rates, and personal housing provident fund loan interest rates. “There is room for reduction in residential mortgage interest rates, consumer loan interest rates, and operating loan interest rates in 2026, and government and corporate bond financing costs will follow suit.” Wang Qing predicts that in 2026, the central bank will cut interest rates twice, by 0.2 to 0.3 percentage points, or 1-2 times, by 0.5 to 1 percentage point. The focus can be on whether the cut can be implemented before the Spring Festival.