People's Bank of China: Fully support the real economy to promote full employment
2023-06-09
According to the official website of the People's Bank of China, recently, the President of the People's Bank of China, Yi Gang, went to Shanghai to investigate financial support for the real economy and promote high-quality development. Yi Gang stated that in the next step, the People's Bank of China will continue to implement a precise and robust monetary policy, strengthen countercyclical regulation, fully support the real economy, promote full employment, and maintain currency stability and financial stability. Yi Gang pointed out that since the beginning of this year, the People's Bank of China has implemented a precise and robust monetary policy, with M2 growth rate maintained at over 11% and social financing scale growth rate around 10%, strongly supporting the recovery of economic development. At present, China's economy is in the recovery stage after the impact of the epidemic, with orderly production activities and the balance sheet of market entities being repaired. The month on month decline in CPI and PPI in recent months is mainly influenced by two factors. One is the time difference between supply and demand recovery. With the strong support of a package of policies to stabilize the economy, domestic production continues to accelerate recovery, agricultural and sideline product production is stable, logistics channels are smooth, and residents have sufficient supply of "vegetable baskets" and "rice bags". At the same time, the demand for major consumer goods such as automobiles and home decoration is relatively weak. Second, the Base effect is obvious. Last year, international oil prices briefly approached the $140/barrel mark, but have since fallen back to around $80/barrel this year, driving down China's year-on-year price increase; Last March, fresh vegetable prices were affected by the disturbance of the epidemic and rose out of season, which also had a high base impact on this year. Yi Gang emphasizes that the production, distribution, circulation, and consumption of the real economy are a cyclical process that requires a systematic and dialectical approach to analysis. With the recovery of consumption scenarios and the gradual increase in household consumption, the total retail sales of consumer goods in society increased by 8.5% from January to April, an increase of 8.7 percentage points compared to the previous year. The expansion of household consumption expenditure will translate into the income of enterprises and workers, which in turn will drive more consumption. It is expected that the year-on-year growth rate of GDP in the second quarter will be relatively high (mainly due to the base effect), and CPI is expected to gradually rebound in the second half of the year, with a year-on-year growth rate of over 1% by December. Have confidence, ability, and conditions to achieve the expected growth goals set during this year's "Two Sessions". Yi Gang stated that the Chinese economy has strong resilience, great potential, and ample policy space. It is necessary to have confidence and patience in the sustained and stable growth of the Chinese economy. Next, the People's Bank of China will comprehensively utilize various monetary policy tools to maintain reasonable and sufficient liquidity, maintain a moderate and stable total amount of monetary and credit, promote a steady decrease in the comprehensive financing costs of the real economy, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. Yi Gang emphasized the need to continuously improve the level of financial services, strengthen financial support for weak links such as private small and micro enterprises, rural revitalization, and service industries that are conducive to stabilizing employment. Increase efforts to support financing in key areas such as technology-based enterprises and green development, assist in the self-reliance and self-improvement of high-level technology, enhance the endogenous growth momentum of the economy, and promote high-quality development. Deepen the reform and opening up of the financial market, continuously optimize cross-border RMB usage policies, comply with market demand, adhere to market driven principles, respect enterprises' independent choices, and facilitate the use of RMB by enterprises in cross-border trade and investment. (New News Agency)
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：people.cn
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