Executive summary:In this year’s government work report, it is proposed to effectively implement a prudent monetary policy, cut the RRR twice in an all-round way, and promote the reduction of loan interest rates.
In this year’s government work report, it is proposed to effectively implement a prudent monetary policy, cut the RRR twice in an all-round way, and promote the reduction of loan interest rates. In accordance with the spirit of the Central Economic Work Conference and the deployment of the government work report, the central bank will hand over the balance of profits to the central government in accordance with the law this year, with a total amount of more than 1 trillion yuan, which is mainly used for tax refunds and increased transfer payments to local governments to support enterprises in bailouts and stabilize Employment to protect people’s livelihood.
The central bank turns over the balance of profits to the central finance in accordance with the law, which will not cause the finance to overdraft to the central bank. Balanced profits are handed over on a monthly basis, and the scale of the central bank’s balance sheet remains stable, reflecting the uniqueness and certainty of my country’s monetary policy, as well as the coordinated linkage between monetary policy and fiscal policy, and jointly exert efforts to stabilize the macroeconomic market.
In terms of actual implementation measures, the continuous supply of monetary policy tools such as RRR cuts, MLF, re-lending, re-discounting, and open market operations has met the market’s demand for short-, medium- and long-term liquidity, and market funds have been able to operate smoothly.
On the eve of the Spring Festival this year, the central bank continued to increase its liquidity supply. Starting from January 17, it launched a 7-day reverse repurchase operation of 100 billion yuan every day, and started a 14-day reverse repurchase operation from January 24. In July and December of last year, two comprehensive RRR cuts were implemented one after another, releasing liquidity of about 1 trillion yuan and 1.2 trillion yuan respectively, and the demand for long-term funds in the precision drip irrigation market. In December last year, the People’s Bank of China issued the “Notice on Matters Concerning the Conversion of Two Direct Monetary Policy Instruments and Continued Support for the Development of Small and Micro Enterprises”, which successively converted the two direct monetary policy instruments to the real economy into market-oriented policy instruments, and continued to support Small and micro business development.
In the next step, the central bank will insist on focusing on economic construction, insist on high-quality development, and insist on deepening reform and expanding opening up. Monetary policy should take the initiative to respond, new loans should maintain a moderate growth, vigorously support small, medium and micro enterprises, firmly support the development of the real economy, and keep the economy operating within a reasonable range.
Original title: Monetary policy actively responds to the central bank’s flexible adjustment to stabilize the “currency anchor”