The People’s Bank of China announced on the 29th that it is necessary to strengthen cross-cyclical and counter-cyclical adjustments, increase the implementation of prudent monetary policy, and give full play to the dual functions of monetary policy tools in terms of total volume and structure, so as to provide stronger support for the real economy.
The Monetary Policy Committee of the People’s Bank of China recently held its regular meeting in the third quarter of 2022. The meeting pointed out that it is necessary to further unblock the monetary policy transmission mechanism, maintain reasonably sufficient liquidity, and enhance the stability of the growth of total credit. Make good use of policy development financial tools, and focus on supporting infrastructure construction. Structural monetary policy tools should continue to be “additive”, strengthen support for key areas, weak links and industries affected by the epidemic, and support financial institutions in issuing loans for equipment renovation and transformation in key areas such as manufacturing. Guide financial institutions to increase medium and long-term loans for the manufacturing industry, focus on stabilizing the industrial chain and supply chain, and improve the green financial system with the goal of promoting carbon peaking and carbon neutrality.
The meeting proposed to guide the service focus of large banks to sink, promote small and medium-sized banks to focus on their main responsibilities and businesses, and support banks to replenish capital. The central bank’s policy interest rate system shall be optimized, the important role of the market-oriented adjustment mechanism of deposit interest rates shall be brought into play, the efficiency and guiding role of the reform of interest rates quoted in the loan market shall be brought into play, and the comprehensive financing cost of enterprises and the cost of personal consumption credit shall be reduced. We will deepen the market-oriented reform of the exchange rate, enhance the flexibility of the RMB exchange rate, guide enterprises and financial institutions to adhere to the concept of “risk neutrality”, strengthen expectation management, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.
In addition, the meeting proposed that city-specific policies should be used to make good use of the policy toolbox to support rigid and improved housing needs, promote the accelerated use of special loans for guaranteed housing and increase the strength as needed, guide commercial banks to provide supporting financing support, maintain The legitimate rights and interests of housing consumers, and promote the steady and healthy development of the real estate market. Promote the healthy and sustainable development of the platform economy, and implement normalized supervision of the platform economy.