Central Bank Q2 Monetary Policy Report: Gradually Increase Frequency of Overnight Reverse Repo Operations to Further Smooth Transmission of Policy Rates to Market Rates

The report proposes continuing a moderately loose monetary policy. It emphasizes shifting attention away from loans as the sole financing channel, instead combining loan and bond financing for observation, noting that aggregate social financing and M2 are more comprehensive monetary aggregate indicators. Meanwhile, the frequency of overnight reverse repo operations will be gradually increased to refine the short-end rate control mechanism, and the incentive role of relending for private enterprises will continue to be leveraged to enhance financing accessibility for private small, medium, and micro enterprises. Additionally, the report expects that adjustments to monetary policies in major overseas economies this cycle will be relatively moderate in magnitude, with potential impacts likely smaller than in the past.