---
title: "The latest signal from the central bank: Prices are showing positive marginal changes, and the coordination between monetary policy and fiscal policy will continue to strengthen"
description: "The People's Bank of China pointed out in the \"Monetary Policy Implementation Report for the Fourth Quarter of 2025\" that it will continue to implement a moderately accommodative monetary policy to pr"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/275468333.md"
published_at: "2026-02-10T13:37:43.000Z"
---

# The latest signal from the central bank: Prices are showing positive marginal changes, and the coordination between monetary policy and fiscal policy will continue to strengthen

> The People's Bank of China pointed out in the "Monetary Policy Implementation Report for the Fourth Quarter of 2025" that it will continue to implement a moderately accommodative monetary policy to promote stable economic growth and a reasonable rebound in prices. The report emphasizes the flexible use of various policy tools, maintaining ample liquidity, ensuring solid credit support, and advancing interest rate marketization reforms to optimize the transmission of monetary policy. Experts believe that last year's policies will continue to exert cumulative effects, supporting the high-quality development of the real economy

On February 10, the People's Bank of China released the "Monetary Policy Implementation Report for the Fourth Quarter of 2025," providing new judgments on key issues such as the next phase of monetary policy, interest rate and exchange rate policies, and the coordination between monetary and fiscal policies.

In terms of monetary policy, **the latest monetary policy report emphasizes the need to continue implementing a moderately accommodative monetary policy.** It considers promoting stable economic growth and a reasonable rebound in prices as important factors in monetary policy. Based on domestic and international economic and financial conditions and the operation of financial markets, it aims to grasp the intensity, rhythm, and timing of policy implementation. **Flexibly and efficiently utilize various policy tools such as reserve requirement ratio cuts and interest rate reductions to maintain ample liquidity and relatively loose social financing conditions, guiding reasonable growth in the total financial volume and balanced credit distribution, ensuring that the growth of social financing scale and money supply aligns with economic growth and the expected target for the overall price level.**

Industry experts indicate that the moderately accommodative monetary policy from the previous year has a cumulative effect, and the effects of existing policies will continue to manifest. In early 2026, the central bank will introduce a package of monetary and financial measures to support the high-quality development of the real economy, and these incremental policies will synergize with existing policies to further create a suitable monetary and financial environment for stable growth in the real economy and a reasonable rebound in prices.

## **Guiding Banks to Stabilize Credit Support**

Regarding liquidity and credit, the report states that **it is necessary to strengthen the analysis and monitoring of liquidity supply and demand in the banking system and changes in financial markets, comprehensively utilize various monetary policy tools, and maintain ample liquidity. Guide banks to stabilize their credit support, ensuring reasonable growth in the total financial volume, and aligning the growth of social financing scale and money supply with economic growth and the expected target for the overall price level.**

On interest rates, the report indicates that **it is essential to deepen the reform of interest rate marketization and smooth the transmission channels of monetary policy. Improve the mechanisms for forming, regulating, and transmitting market-oriented interest rates, and leverage the guiding role of the central bank's policy interest rates.** Guide short-term money market interest rates to operate smoothly around the central bank's policy interest rates. Strengthen the execution and supervision of interest rate policies, continuously conduct on-site inspections and evaluations of financial institutions' adherence to interest rate policies and self-discipline agreements, and enhance banks' ability to set prices rationally and independently. Better utilize the role of the interest rate self-discipline mechanism, effectively implement various interest rate self-discipline initiatives, and maintain competitive order in the banking market. Continue to reform and improve the Loan Prime Rate (LPR), focusing on enhancing the quality of LPR quotations to more accurately reflect the level of interest rates in the loan market. Urge financial institutions to adhere to the principle of risk pricing and clarify the relationship between loan interest rates and market interest rates such as bond yields.

Regarding exchange rates, the report states that it is necessary to steadily deepen the reform of exchange rate marketization, improve a managed floating exchange rate system based on market supply and demand and referencing a basket of currencies, uphold the decisive role of the market in exchange rate formation, and utilize exchange rate adjustments as a macroeconomic and international balance of payments automatic stabilizer.

## **Prices Show Positive Marginal Changes**

When discussing the next phase of monetary policy, the report emphasizes that **a reasonable rebound in prices should be an important consideration in monetary policy.** Price movements are showing positive changes Data shows that in December 2025, the CPI rose by 0.8% year-on-year, reaching the highest level since March 2023, with the annual CPI remaining flat compared to the previous year; the core CPI, excluding food and energy, increased by 1.2% year-on-year, maintaining above 1% for four consecutive months; the PPI decreased by 1.9% year-on-year, with the decline narrowing by 1.7 percentage points from the low point in July 2025, and has risen for three consecutive months on a month-on-month basis.

Industry experts indicate that analyzing the price situation also requires observing its structural characteristics. Last year, prices operated at a low level, with low prices in food and transportation energy significantly impacting this, which is related to supply and demand relationships and the input effect of falling international oil prices. It should also be noted that in some areas reflecting high-quality economic development and the optimization and upgrading of residents' consumption structure, the price level has generally stabilized and risen. Among the CPI sub-indicators last year, education, culture, and entertainment rose by a cumulative 0.8%. At the beginning of 2026, the State Council's executive meeting deployed a package of policies to promote domestic demand through fiscal and financial collaboration, and relevant departments have successively introduced specific policy measures, all of which will support domestic demand growth and benefit the virtuous cycle of supply and demand in the real economy, with prices expected to further rise moderately.

## **Continuous Strengthening of Coordination Between Monetary Policy and Fiscal Policy**

The monetary policy report for the fourth quarter proposed that **the coordination between monetary policy and fiscal policy can synergistically release policy effects.**

The report pointed out that **monetary policy and fiscal policy mainly strengthen coordination through three models.** First, the People's Bank of China maintains ample market liquidity through open market operations to support the smooth and efficient issuance of government bonds. Second, through the "re-lending + fiscal subsidies" approach, it collaborates from both ends of credit market supply and demand to optimize financial resource allocation. Third, through guarantees and other credit enhancement methods, it jointly shares the risk costs of loans and bonds, enhancing the risk appetite of financial institutions and increasing financing support for enterprises. Among these, the second and third collaborative methods focus on structural optimization.

In January 2026, the People's Bank of China and the Ministry of Finance announced a package of policy measures to continue collaborating to expand domestic demand. This includes: first, the "re-lending + subsidy" policy in the equipment renewal sector; second, the "re-lending + subsidy" policy supporting small and micro enterprises and the private economy; third, the "re-lending + subsidy" policy supporting consumption stimulation; fourth, the risk-sharing policy supporting private enterprises in issuing bonds.

The report stated that in the next phase, the People's Bank of China will continue to strengthen the coordination between monetary policy and fiscal policy, fully leverage the synergistic effects of policies, amplify policy effectiveness, guide social capital to participate in promoting consumption and expanding investment, and jointly support stable growth and structural adjustment, working together to promote high-quality economic development.

Risk Warning and Disclaimer

The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial conditions, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment based on this is at their own risk

### Related Stocks

- [000300.CN - CSI 300](https://longbridge.com/en/quote/000300.CN.md)
- [03420.HK - A VP RMB MM](https://longbridge.com/en/quote/03420.HK.md)
- [03192.HK - A BOS RMB MM](https://longbridge.com/en/quote/03192.HK.md)
- [83192.HK - A BOS RMB MM-R](https://longbridge.com/en/quote/83192.HK.md)
- [000001.CN - SSE Index](https://longbridge.com/en/quote/000001.CN.md)
- [83161.HK - A CAM RMB MM-R](https://longbridge.com/en/quote/83161.HK.md)
- [03161.HK - A CAM RMB MM](https://longbridge.com/en/quote/03161.HK.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| 看涨押注翻倍、年内或再升 5%？人民币走出独立行情，后续怎么看 | 人民币在外汇期权市场的看涨押注激增，市场对其年内升值 5% 的预期显著升温。美元兑人民币期权交易量大幅上升，押注人民币升值的看跌期权交易量达到 1 亿美元，显示出投资者对人民币升值的信心。人民币近期表现强劲，创下自 2010 年以来的最长连 | [Link](https://longbridge.com/en/news/277161164.md) |
| 上海发布楼市 “沪七条” | 上海市于 2026 年 2 月 26 日起实施新房地产政策，旨在满足居民住房需求并促进市场健康发展。政策包括缩短非沪籍居民购房所需社保或个税年限，允许符合条件的非沪籍居民在外环内增购住房，以及持《上海市居住证》的居民可在本市购房。具体规定包 | [Link](https://longbridge.com/en/news/276835470.md) |
| 《求是》：进一步增强宏观政策取向一致性 | 《求是》指出，宏观政策的一致性对经济平稳运行和高质量发展至关重要。面对复杂的国内外形势，党中央实施积极的宏观政策，推动经济发展。2025 年中央经济工作会议强调增强宏观政策取向的一致性和有效性，确保各类政策在目标、工具、时机等方面协调一致， | [Link](https://longbridge.com/en/news/277462313.md) |
| 由于需求低迷，中国的工厂活动预计将连续第二个月萎缩 | 中国的制造业活动预计将在 2 月份连续第二个月收缩，官方采购经理人指数（PMI）预计将从 49.3 降至 49.1。疲弱的国内需求和投资抵消了强劲的出口。经济学家预计，如果没有额外的政策支持，2026 年初将继续出现疲软的增长，尽管之前的宽 | [Link](https://longbridge.com/en/news/277410011.md) |
| 香港与上海签署了关于数字贸易融资和跨境数据连接的协议 | 香港和上海签署了一份谅解备忘录，以增强在数字化货物贸易融资和跨境数据整合方面的合作。该协议旨在促进电子提单的使用，并便利中国大陆的贸易数据与全球生态系统的整合。此举是香港金融管理局（HKMA）CargoX 项目的一部分，旨在现代化贸易融资并 | [Link](https://longbridge.com/en/news/277451786.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.