The People's Bank of China stressed the need on Monday to monitor the risk of imported inflation, pledging to intensify the forward-looking, flexible and targeted nature of its policies amid rising global uncertainties.

In its first-quarter monetary policy report, the central bank said that effective demand has gradually recovered this year, with improved supply and demand dynamics in the real economy providing strong support for a reasonable prices recovery.

The PBOC acknowledged that recent geopolitical events in the Middle East have driven up international crude oil and commodity prices, contributing to the pickup in domestic price indicators, while stressing that "the impact of external imported inflation on the domestic economy requires close monitoring".

In the first quarter, China's consumer price index rose 0.9 percent year-on-year, up from zero in the whole year of 2025.

The bank also recognized the rising external challenges from weak global growth, rising supply shocks and uncertainties in global central banks' monetary policy adjustments.

The central bank said it will calibrate the intensity, pace and timing of policy implementation based on domestic and international economic and financial conditions, while strengthening coordination with fiscal policy to ensure stable economic growth and a reasonable price recovery.

To promote a steady capital market, the PBOC said it has continued the central bank lending program that supports share buyback and shareholding increase. By the end of March, financial institutions had signed contracts worth about 370 billion yuan ($54 billion) for loans used for share buyback and shareholding increase, with over 180 billion yuan already disbursed.