AI Data Insight
In Q2 2026, the year-on-year growth rate of China's currency in circulation (M0) reached 12.2%, narrowing slightly from the previous 12.5% in Q1 2026, but still maintaining strong double-digit growth. Although the overall pace of credit expansion is relatively moderate and the central bank emphasized the continuation of a "moderately loose" monetary policy, the persistently high M0 growth rate reflects that liquidity demand for cash from the private sector remains robust. Going forward, attention should be paid to the impact of rebounding inflation data on the policy rhythm.