The People's Bank of China (PBOC) has announced its commitment to continue implementing a moderately loose monetary policy, as revealed during its 2026 Working Conference held on January 5-6. The central bank aims to leverage both incremental and existing policies to enhance the quality and efficiency of financial services, supporting high-quality economic development and stable financial markets. The PBOC emphasized the importance of using various monetary policy tools, including reserve requirement ratio and interest rate cuts, to maintain ample liquidity and guide reasonable growth in financial volumes. The conference also highlighted the need to stabilize the RMB exchange rate and prevent exchange rate overshooting, ensuring a favorable environment for the 15th Five-Year Plan's commencement.