China's central bank will continue to implement a moderately loose monetary policy in 2026, and will utilize tools such as reserve requirement ratio (RRR) cuts and interest rate reductions to ensure liquidity remains sufficient, according to Pan Gongsheng, Governor of the People's Bank of China (PBOC).

Monetary policy will focus on promoting stable economic growth and reasonable price recovery, with the use of both incremental and existing policies to create a favorable monetary and financial environment for the high-quality development and stable operations of financial markets, Pan told CMG in an interview.

"There is still room for further RRR and interest rate cuts this year," he said, promising efforts to ensure the effective implementation and oversight of interest rate policies to keep overall financing costs at a low level.