Pan backs accommodative policy and warns against weaker regulation
Pan Gongsheng, Governor of the People's Bank of China (PBOC), backed continued accommodative monetary policy at the third G20 finance ministers and central bank governors meeting of 2026. He spoke in Bangkok, Thailand, on October 15, 2026.
Accommodation without weaker safeguards
Pan said the PBOC would maintain appropriately accommodative monetary policy to support steady growth and smooth financial market operations.
China's development remained on track, markets operated smoothly and long-term economic fundamentals were unchanged, he said.
He identified intensifying geopolitical conflicts as the largest uncertainty for the global economy.
Government bond market volatility and risks of corrections in AI-related asset valuations had increased financial vulnerabilities in some countries.
Pan stressed that modernizing regulation did not mean easing it or weakening financial stability and resilience.
Deputy Governor Xuan Changneng also attended the meeting, which covered the global outlook and financial sector reform.
Imbalances extend beyond trade accounts
Pan called for assessing global imbalances through both current accounts and financial channels, whose importance had grown with financial integration.
He said exchange rate adjustments cannot resolve global imbalances and that exchange rates have no straightforward relationship with current accounts.
Growth, financial markets, geopolitics and sudden shocks all influence currency movements.
Participants supported better financial regulation and emphasized the sector's role in allocating resources efficiently and supporting steady growth.
Coordination against shared risks
Participants described global resilience but said trade frictions and protectionism disrupted supply chains, raised inflation and unsettled expectations.
They backed stronger G20 coordination, financial stability and growth.
Pan urged use of the G20 Finance Track to coordinate macroeconomic policy and tackle global risks.