China: PBOC reiterated its measured easing stance at Q2 MPC meeting; Governor Pan unveiled package to support CNH market in Hong Kong

Research evidence excerpt

China: PBOC reiterated its measured easing stance at Q2 MPC meeting; Governor Pan unveiled package to support CNH market in Hong Kong

Economics Research

9 July 2026 | 7:16AM HKT

China: PBOC reiterated its measured easing stance at Q2 MPC meeting;

Governor Pan unveiled package to support CNH market in Hong Kong

Bottom line: Xinquan Chen

+852-2978-2418 |

xinquan.chen@gs.com

The PBOC held its Q2 MPC meeting on July 4th and the statement was released on Goldman Sachs (Asia) L.L.C.

July 8th. Compared with the Q1 MPC meeting minutes, the central bank appears to

have acknowledged softer economic momentum, especially weak domestic demand

and more bifurcated growth. That said, the statement points to limited appetite for

near-term broad-based monetary easing, and we maintain our baseline of no policy

rate or RRR cuts in 2026. In our view, near-term policy support is more likely to more

likely to come through faster fiscal policy implementation, ample interbank liquidity

and targeted credit easing. Separately, Governor Pan Gongsheng announced a

package of measures to support Hong Kong’s CNH market. In our view, the package

aims to improve CNH liquidity and strengthen the market infrastructure, which

should help provide more stable and lower-cost CNH funding over time, while

improving the market depth of CNH fixed income and FX products.

Main points:

1. At the Q2 Monetary Policy Committee (MPC) meeting, the PBOC reiterated a

measured easing stance. Compared with the Q1 MPC meeting minutes, the central

bank appears to have acknowledged softer economic momentum. The statement

changed the description of domestic growth from “overall stable and improving” (总体

平稳、稳中有进) to “overall stable, moving toward new and high-quality growth drivers” (

总体平稳、向新向优).