MNI BRIEF: PBOC To Maintain Accommodative Policy Stance: NPC

China will maintain a moderately accommodative monetary stance, take measures to stabilise inflation, and implement structural innovations in key sectors, according to the Government Work Report delivered by Premier Li Qiang during the opening session of the National People's Congress in Beijing on Thursday.

The central bank will use a variety of tools “flexibly and efficiently,” including required reserve ratio (RRR) cuts and interest rate reductions, while maintaining ample liquidity and expanding structural facilities, Li said. Authorities aim to keep social financing costs low and maintain the basic stability of the yuan at a “reasonable and balanced level.”

The consumer price index (CPI) target is set at “around 2%,” unchanged from 2025, with consideration given to both expectation guidance and practical feasibility, he added. The government will work to support a shift from negative to positive price growth by improving supply and demand conditions. (See: MNI: Lower China GDP Growth Eyed Amid Economic Headwinds)