China’s Monetary Policy Committee Convenes Second Quarter Meeting


The Monetary Policy Committee of the People’s Bank of China (PBOC) has just convened its routine meeting for the second quarter of 2021.

PBOC announced on 28 June that the second quarter meeting of its Monetary Policy Committee was convened on 25 June in Beijing.

The Q2 meeting maintained the overall themes of the first quarter meeting, calling for:

  • Stable monetary policy which is flexibly targeted and rational moderate.
  • Effectively grasping the timeliness of policy.
  • Maintaining rationally ample liquidity.
  • Expanding the vigour of support for financial inclusion.
  • Guiding financial institutions in expanding support for areas including fintech innovation, micro and small-enterprises and green development.
  • Maintaining fundamental consistency between growth in the money supply and total social financing with nominal economic growth;
  • Maintaining the basic stability of macro-leverage ratios.

The Q2 meeting expanded upon these themes however, by also adding mention of:

  • Preventing external shocks.
  • Maintaining the stability of the broader economy, and strengthening the resilience of economic growth.
  • Optimising regulation of deposit interest rates.
  • Adjusting methods for confirming the ceiling for the deposit interest rate self-disciplinary mechanism.
  • Researching the establishment of carbon reductions support tools to expedite achieving carbon targets and improve the green finance system.