People’s Bank of China Affirms Continued Loose Monetary Policy

2 mins mins

Key Points:

Focus on sustaining a loose monetary policy to bolster economic growth.
PBoC emphasized liquidity and stable financing conditions.
No immediate impact noted on cryptocurrency markets or assets.

The People’s Bank of China is set to hold a work conference on January 5-6, 2026, emphasizing a moderately loose monetary policy during economic planning for the year.

This meeting could influence financial stability, market dynamics, and policy execution in China for 2026, with implications for global economic trends and cross-border financial activities.

PBoC to Implement Reserve Ratio Cuts and Rate Reductions

The People’s Bank of China underscored the need for a moderate monetary policy at a conference held on January 5-6, 2026. The objective was to enhance financial service quality and efficiency in supporting the real economy. The meeting was attended by key Chinese economic leaders, reinforcing the policy’s significance.

Key changes due to this policy include increased counter-cyclical adjustments and a focus on maintaining ample liquidity. The policy tools proposed, such as reserve requirement ratio cuts and interest rate reductions, suggest a commitment to sustaining economic activity and ensuring stable financial markets.

Market reactions have been muted due to the absence of direct crypto-related announcements. Notably, Chinese President Xi Jinping highlighted stability in macro policies and RMB exchange rate, emphasizing their significance for economic discourse. As he said, “reviewing 2025 economics and outlining 2026 priorities like proactive macro policies and RMB stability.” No substantial crypto-specific responses have emerged.

China’s Economic Strategy and Cryptocurrency Market Insights

Did you know? China’s focus on a moderately loose monetary policy aligns with economic priorities set during the Central Economic Work Conference, stressing proactive macro policies and RMB stability as key national objectives.

According to CoinMarketCap, Bitcoin’s price stands at $93,616.85 with a market cap of $1.87 trillion. As of 10:18 UTC on January 6, 2026, Bitcoin’s 24-hour trading volume increased by 39.60%. Over the past 90 days, Bitcoin experienced a 23.66% price decrease.

bitcoin-daily-chart-5456 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 10:18 UTC on January 6, 2026. *Source: CoinMarketCap*

Financial insights from Coincu’s research suggest continuity in China’s policy might bolster domestic demand, affecting various sectors. Despite lacking cryptocurrency-specific outcomes, the policy highlights potential economic stability benefits amid global financial adjustments.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.