FX.co ★ People’s Bank of China confirms moderately accommodative policy to support economy

On March 31, 2026, the People’s Bank of China (PBOC) said, following a meeting of its monetary policy committee for the first quarter, that it would maintain a supportive policy stance. The regulator intends to pursue a moderately accommodative monetary strategy, strengthening countercyclical adjustments to support the national economy amid an unstable external environment.

Despite broad stability, China’s economy faces a number of structural challenges. Key issues include an imbalance between excess supply and weak domestic demand and the adverse impact of external shocks. In response, the PBOC pledged to ensure adequate system liquidity and to deploy a wide range of policy tools to stimulate business activity.

The bank said it would give particular attention to stabilizing the national currency. The PBOC intends to keep the yuan’s exchange rate at a reasonable and balanced level while enhancing the currency market’s resilience to volatility. Those measures are aimed at creating predictable conditions for exporters and investors during a period of global geopolitical uncertainty.

One priority for the PBOC will be supporting the recovery of consumer prices. The regulator plans to optimize supply structures and at the same time expand domestic consumption. The policy reflects Beijing’s aim to balance economic growth and to head off deflationary risks while ensuring the long‑term stability of the financial sector.