Intensify macroeconomic regulation and improve the quality and efficiency of serving the real economy - Relevant officials of the central bank respond to financial hot topics
2024-01-25
What adjustments have been made to China's monetary policy? What new measures will be introduced one after another to consolidate the positive trend of economic recovery? At the press conference of the State Council Information Office held on the 24th, the relevant person in charge of the People's Bank of China detailed the key work of this year and responded to hot issues. "The monetary policy is" self centered "with sufficient space. We will adhere to a prudent monetary policy, implement flexible, moderate, precise and effective requirements, and continue to create a good monetary and financial environment for stable growth of the real economy." Pan Gongsheng, President of the People's Bank of China, reiterated the "prudent" monetary policy orientation at the press conference. Over the past year, the People's Bank of China has timely strengthened countercyclical regulation, lowered the reserve requirement ratio twice, and lowered policy interest rates twice, maintaining a reasonable and sufficient market liquidity and providing strong support for the development of the real economy. "In the past few years, compared with the significant increase in monetary policy in developed economies, China's monetary policy operation has been relatively stable, and the regulatory and transmission mechanisms of monetary policy have been continuously enriched and improved, creating conditions for sustainable support of economic development." Pan Gongsheng said that the People's Bank of China will continue to strengthen cross cycle and countercyclical regulation, taking maintaining price stability and promoting moderate price recovery as important considerations for grasping monetary policy. We must adhere to the goals of monetary policy, maintain the stability of the currency value, and promote economic growth through this. The market generally predicts that the Federal Reserve's monetary policy will shift in 2024. What impact will this have on China's monetary policy? "China's monetary policy always adheres to self centeredness while balancing internal and external factors." Pan Gongsheng gave an answer: In 2024, the spillover effect of monetary policy in developed economies will develop towards reduced pressure, and the cyclical difference in monetary policy between China and the United States is converging. This objectively helps to enhance the autonomy of China's monetary policy operation and expand the space for monetary policy operation. On that day, the People's Bank of China announced a 0.5 percentage point reduction in the reserve requirement ratio for financial institutions starting from February 5th, and a 0.25 percentage point reduction in the support for agriculture, small businesses, and rediscount rates starting from January 25th. "At present, there is still enough space for China's monetary policy. We will balance the relationship between short-term and long-term, stable growth and risk prevention, internal balance and external balance, strengthen countercyclical and cross cyclical regulation, and create a good monetary and financial environment for economic operation," said Pan Gongsheng. Intensify efforts to do well in the five major articles, and pay attention to handling the relationship between total quantity and structure, stock and increment. Optimizing the credit structure and improving the efficiency of fund utilization has become a frequently mentioned topic at the press conference, and it is also a key task of the People's Bank of China in 2024. Under the guidance of monetary policy, the credit structure of financial institutions continues to be optimized. As of the end of 2023, the balance of inclusive small and micro loans increased by 23.5% year-on-year, while the growth rates of "specialized, refined, and innovative" and technology small and medium-sized enterprise loans were 18.6% and 21.9%, respectively. The balance of medium and long-term loans in the manufacturing industry increased by 31.9% year-on-year, with the growth rate of medium and long-term loans in high-tech manufacturing reaching 34%. The loan growth rate in these key areas and weak links is significantly higher than the overall loan growth rate of 10.6%. We should pay more attention to finance when doing well in the five major articles
Edit：He Chuanning Responsible editor：Su Suiyue
Source：Xinhua
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