On May 11, the People’s Bank of China (PBOC) released its Q1 2026 monetary policy report, affirming a moderately accommodative stance for the next phase to maintain ample liquidity and loose financing conditions, fully supporting economic recovery. The report pledged flexible use of RRR cuts, reverse repos and other tools to guide balanced credit allocation, scaling up structural support for domestic demand expansion, tech innovation, SMEs and green development. Amid inflation recovery and external uncertainties, the PBOC emphasized balancing growth, employment and price stability, guarding against imported inflation risks and keeping the RMB exchange rate stable at reasonable equilibrium levels. Markets interpret this as an unchanged easing bias, with potential RRR and rate cuts ahead; structural tools will remain focused, benefiting consumption, tech and real economy financing to sustain economic recovery.