From December 10 to 11, the Central Economic Work Conference was held in Beijing. The conference deployed economic work for 2026. When deploying next year's monetary policy, the conference said that a moderately loose monetary policy should continue to be implemented, and proposed “flexible and efficient use of various policy tools such as interest rate cuts.” Specifically, the conference proposed that promoting steady economic growth and reasonable price recovery should be important considerations in monetary policy. Use various policy tools such as interest rate cuts flexibly and efficiently to maintain abundant liquidity, unblock monetary policy transmission mechanisms, and guide financial institutions to step up support for expanding domestic demand, scientific and technological innovation, and micro, small and medium-sized enterprises. Dong Ximiao, chief researcher at CMB, believes that from a monetary policy perspective, in order to continue to maintain a moderately loose tone and cooperate with fiscal policy, it is expected that deposit interest rates and policy interest rates will drop further in 2026. Interest rate cuts may be implemented once or twice, and more attention will be paid to using the role of structural monetary policy as a tool to guide more financial resources towards technological innovation, green development, and boosting consumption. However, monetary policy will not be “flooded”; it will focus on grasping and handling the three aspects of short-term and long-term relationships, steady growth and risk prevention, and internal and external relationships.

From December 10 to 11, the Central Economic Work Conference was held in Beijing. The conference deployed economic work for 2026. When deploying next year's monetary policy, the conference said that a moderately loose monetary policy should continue to be implemented, and proposed “flexible and efficient use of various policy tools such as interest rate cuts.” Specifically, the conference proposed that promoting steady economic growth and reasonable price recovery should be important considerations in monetary policy. Use various policy tools such as interest rate cuts flexibly and efficiently to maintain abundant liquidity, unblock monetary policy transmission mechanisms, and guide financial institutions to step up support for expanding domestic demand, scientific and technological innovation, and micro, small and medium-sized enterprises. Dong Ximiao, chief researcher at CMB, believes that from a monetary policy perspective, in order to continue to maintain a moderately loose tone and cooperate with fiscal policy, it is expected that deposit interest rates and policy interest rates will drop further in 2026. Interest rate cuts may be implemented once or twice, and more attention will be paid to using the role of structural monetary policy as a tool to guide more financial resources towards technological innovation, green development, and boosting consumption. However, monetary policy will not be “flooded”; it will focus on grasping and handling the three aspects of short-term and long-term relationships, steady growth and risk prevention, and internal and external relationships.