The central bank pointed out that it attaches great importance to the potential for future inflation to heat up, especially changes in the demand side; at the same time, it stated that it will focus on stabilizing the cost of bank liabilities, releasing the efficiency of the loan market quotation interest rate reform, and promoting the reduction of corporate financing and personal consumption credit costs.
On the evening of November 16, the People’s Bank of China announced the implementation report of China’s monetary policy for the third quarter of 2022, revealing different information from the second quarter.
Compared with the second quarter report,The central bank deleted the expression “to make good use of the dual functions of the aggregate and structure of monetary policy tools”,However, it still stated that it will increase the implementation of a prudent monetary policy, insist on not engaging in “flood irrigation”, and provide stronger and higher-quality support for the real economy.
Compared with the second quarter, the third quarter report emphasizes that,Provide a suitable liquidity environment for consolidating the stable and upward trend of the economy and doing a good job in the economic work at the end of the year.Pay close attention to the domestic and foreign economic and financial situation and changes in the monetary policies of major central banks, strengthen the analysis and monitoring of the liquidity supply and demand situation and changes in the financial market, flexibly carry out open market operations, further improve the forward-looking, flexibility and effectiveness of operations, and stabilize market expectations , grasp the internal and external balance.
The central bank also pointed out thatAttach great importance to the potential possibility of future inflation, especially changes on the demand sidecontinue to consolidate the favorable conditions for stable and increasing domestic grain production and the smooth operation of the energy market, and make appropriate responses to keep the price level basically stable.
In terms of building and supporting the real economy, the central bank emphasized that it is necessary to continue to support financial institutions in implementing deferred repayment of principal and interest on qualified loans, urge and guide financial institutions to accelerate the establishment of a long-term financial service mechanism for small and micro enterprises that dare to lend and will lend, and improve the quality of small, medium and micro enterprises. Financing availability and convenience.Take multiple measures to promote policy-based development financial instruments to support major projects to speed up construction and fund payment, support project supporting financing, and solidly promote the formation of more physical workloads.
At the same time, the central bank stated that it will continue to deepen the market-oriented reform of interest rates, optimize the central bank’s policy interest rate system, play an important role in the market-oriented adjustment mechanism of deposit interest rates, focus on stabilizing the cost of bank liabilities, and release the efficiency of loan market quotation interest rate reforms.Promote the reduction of corporate financing and personal consumption credit costs.
In terms of the housing market, firmly adhere to the positioning that houses are for living in, not for speculation, insist on not using real estate as a means to stimulate the economy in the short term, insist on stabilizing land prices, housing prices, and expectations, and make full use of policies according to cities Toolbox to support rigid and improved housing needs, promote the accelerated implementation and use of special loans for guaranteed delivery buildings, and appropriately increase efforts as needed,Guide commercial banks to provide supporting financing support to safeguard the legitimate rights and interests of housing consumersPromote the healthy development and virtuous circle of the real estate market.
In terms of preventing financial risks, the central bank pointed out that it is necessary to pay close attention to the economic trends of major developed economies and the spillover impact of monetary policy adjustments, and to focus on internal and external balance. Coordinate economic development and risk prevention, maintain the overall stability of the financial system, establish and improve financial risk prevention, early warning and disposal mechanisms, resolutely hold the bottom line of systemic financial risks, and safeguard the interests of the broad masses of the people.
The following is the content of the “main policy ideas for the next stage” part of the monetary policy implementation report of the People’s Bank of China for the third quarter of 2022. The blue part is the new content in the second quarter, and the red strikethrough part is the deleted content in the second quarter report.
In the next stage, the People’s Bank of China will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era,deep learningimplement the party’stwentyThe spirit of the 19th National Congress of the Communist Party of China, the previous plenary sessions of the 19th National Congress, and the Central Economic Work Conference，Focus on building a high-level socialist market economic system and comprehensively promote Chinese-style modernization.and the requirements of the “Government Work Report”in accordance with the decision-making and deployment of the Party Central Committee and the State Council, insist on keeping the word stable and making progress while maintaining stability,Completely, accurately and comprehensively implement the new development concept and accelerate the construction of a new development pattern,deepenfinancial systemsupply side structureReform and build a modern central bank system,Sound Modern Monetary Policy Frameworkdo a good job in the implementation of policies and measures,Consolidate the positive trend of economic recoveryfocus on stabilizing employment and prices, and play the key role of effective investment.Consolidate and expandKeepThe economy is stabilizing and upward, driving the economyOperate within a reasonable range and strive toaccomplishEffective improvement of quality and reasonable growth of quantityThe best result is to welcome the victory of the 20th National Congress of the Communist Party of China with practical actions.
Strengthen the implementation of prudent monetary policy,Give full play to the dual functions of monetary policy tools, both aggregate and structural, and proactively respond to boost confidence, do a good job in cross-cycle adjustment, take into account the short-term and long-term, economic growth and price stability, internal balance and external balance, insist on not engaging in “flood irrigation”, not excessive currency issuance, and provide stronger and higher-quality support for the real economy . To maintain reasonable and sufficient liquidity,Guiding policy and development banksIncrease credit support for businessesmake good use ofwith enoughPolicy development financial instrumentsand 800 billion new credit lines to guide commercial banks to expand medium and long-term loans，Focus on supporting infrastructure constructionto maintain a reasonable increase in the money supply and social financing scale, and strive to achieve economic operationbettermostresult.attach great importance to the futurePay close attention to domestic and foreigninflationPotential for heating up, especially on the demand sideofsituationWe will continue to consolidate the favorable conditions for stable and increasing domestic grain production and the smooth operation of the energy market, and make appropriate responses to keep the price level basically stable.implement wellStructural monetary policy tools are actively doing “addition”，increaseInclusive small and micro loan supporttools, carbon reductionStrength,supporttools andSmall, medium and micro enterprises have stable employment and make good use of themSupport clean and efficient utilization of coal, scientific and technological innovation, inclusive elderly care, transportation and logistics,Equipment renovationspecial refinancing,strengthen pairand carbon reduction support tools to facilitate the transfer of financial resources toKey areas, weak links, industries and market entities seriously affected by the epidemicsupport.Implement detailed financial services for small and micro enterprises, private enterprises dare to lend and will have long-term loansmechanism,Enhance the vitality of micro-subjects.continue to deepenTilting and cultivating new economic growth points.Sound marketizationinterest rate marketchangereform formation and transmissionmechanism, optimize the central bank’s policy interest rate system,Strengthen deposit rate supervision，to playThe market-based adjustment mechanism of deposit interest rates plays an important role in stabilizing the cost of bank liabilities.freedGive full play to the effectiveness of the loan market quotation interest rate reformand mentoringto promote the reduction of corporatecomprehensivefinancingand personal consumer creditcost. Pay close attention to the economic trends of major developed economies and the spillover effects of monetary policy adjustments, and focus on internal and external balance.Adhere to the managed floating exchange rate system based on market supply and demand, adjusted with reference to a basket of currencies, and adhere toThe market plays a decisive role in the formation of exchange rates, insisting onBottom-line thinking, strengtheningexpectedMacro-prudential for cross-border capital flowsManagement, to maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.Following the principles of market-oriented rule of law,Coordinating economic development and risk prevention, maintaining the overall stability of the financial system,Establish and improve financial risk prevention, early warning and disposal mechanismsresolutely hold the bottom line of no systemic financial risks,Safeguard the interests of the broad masses of the people.
The first is to maintain a steady and moderate growth of money and credit. Comprehensively use a variety of monetary policy tools to maintain a reasonable and sufficient liquidity, maintain a reasonable increase in the money supply and social financing scale,to consolidateeconomyStabilize the upward trend and do a good job at the end of the yearstrive forEconomic jobs provide the right environment for mobilityRun for best results.CloselyinternationalityDomestic and foreign economic and financial situations and the monetary policies of major central banksmany uncertaintiesVariety,Strengthen the pairIn-depth study and judgment of the banking systemLiquidity supply and demandAnalyzing and monitoring the situation and changes in the financial market, and flexibly conducting open market operations,furthersituationimprove the forward-looking, flexibility and effectiveness of operations, and stabilizeit is goodmarket expectation,graspbalanceGood internal and external balance. Improve the money supply control mechanism, continue to ease the liquidity, capital and interest rate constraints of bank credit supply, and guide financial institutions to follow the market-oriented rule of law,Prudent managementIn principle, increase credit support for the real economy.Make good use of policyguideDevelopmentalFinancial tooland policy,Developmentalbankimplement wellAdd 8000 8000100 million credit line,and the newly established financial instruments of 300 billion yuan, powerfulsupporting infrastructurethe constructionprojectfinancing. Improve the sustainable capital replenishment mechanism, replenish the capital of commercial banks through multiple channels, increase support for small and medium-sized banks to issue perpetual bonds and other capital replenishment tools, and improve the ability of banks to serve the real economy and prevent and resolve financial risks.
Second, the structural monetary policy tools are “focused on key points, reasonable and moderate, with advances and retreats”,Highlight the key areas and weak links of financial support. Maintain the stability of re-lending and re-discount policies. Continue to provide inclusive and continuous financial support for agriculture, small and micro enterprises, and private enterprises.Increase financial support for small and micro enterprisesto promote the better implementation and effectiveness of inclusive small and micro loan support tools,Maintain financial support for small and micro enterprises, to better play its important role in stabilizing enterprises and ensuring employment. Parallel implementation of carbon emission reduction support tools and special refinancing to support the clean and efficient use of coal,Scientific and orderly support for carbon emission reduction. Support qualified financial institutions to provide preferential interest rate financing for key projects with significant carbon emission reduction benefits, and guide financial institutions to support green and low-carbon development in accordance with market principles; support the clean and efficient use of coal and coal power, while ensuring energy supply security Support the transformation of the economy to green and low-carbon, and help scientifically and orderly achieve the goal of carbon peak and carbon neutrality.speed upkeep runningTechnological innovation, inclusive elderly care, transportation and logisticsthree itemsspecial refinancing,Accelerate the promotion of special refinancing for equipment renovationcome into force,Support financial institutions in providing financing support to corresponding fields in accordance with market-oriented principlesplayStructural Monetary Policy Toolsspecial refinancingPrecise drip irrigation and positive incentives.
The third is to build a financial system to effectively support the real economy.keep pushingImplement detailed financial policies that have been introducedDetailed implementation of measures。Do a good job in the implementation of a package of policies and measures to stabilize the economy, encourage the implementation of deferred repayment of principal and interest for small, medium and micro enterprises, individual industrial and commercial households, and truck driver loans, and continue to promote financial institutions to implement the 23 articles of financial services for epidemic prevention and control and economic and social development Measures and several policies to promote the recovery and development of difficult industries in the service sector,Continue to support financial institutions in implementing deferred repayment of principal and interest on qualified loans, urge and guide financial institutions to accelerate the establishment of a long-term mechanism for financial services for small and micro enterprises that dare to lend and will lend,Improve the availability and convenience of financing for small, medium and micro enterprises.Guide financial institutions to speed up the implementation of the “Notice on Promoting the Establishment of a Long-term Mechanism for Financial Services for Small and Micro Enterprises Dare to Loan, Willing to Loan, Capable of Loaning and Loaning”, and enhance the willingness, ability and sustainability of serving small and micro enterprises.Continue to carry out the assessment of the effect of credit policy guidance for small and micro enterprises, and strengthen the application of assessment results.Focus on key areas of rural revitalization, guide financial institutions to optimize resource allocation, promote innovation in financial products and services, and practically increase financial support in the field of “agriculture, rural areas and farmers”. Make good use of 300 billion yuan of policy-based development financial instruments in accordance with laws and regulations, promote the timely release of the newly added 800 billion yuan of development-oriented policy bank credit lines, guide commercial banks and social funds to follow up and provide financing support, and accelerate the promotion of infrastructure construction Form a physical workload with major projects, and play a positive role in stabilizing investment.Take multiple measures to promote policy-based development financial instruments to support major projects to speed up construction and fund payment, support project supporting financing, and solidly promote the formation of more physical workloads.Firmly adhere to the positioning that houses are for living in, not for speculation, insist on not using real estate as a means of stimulating the economy in the short term, insist on stabilizing land prices, housing prices, and expectations, and make full use of the policy toolbox according to the city’s policies to support Rigid and improved housing needs,Accelerate the implementation and use of special loans for guaranteed delivery buildings and increase efforts appropriately as needed, guide commercial banks to provide supporting financing support,Steadily implement the real estate financial prudential management system，Safeguard the legitimate rights and interests of housing consumersPromote the healthy development and virtuous circle of the real estate market.
The fourth is to deepen the market-oriented reform of interest rates and exchange rates, focusing on me and taking into account internal and external balance. Continue to improve the market-oriented interest rate formation and transmission mechanism, and improve the central bank policy interest rate system. Strengthen the supervision of deposit interest rates,Implement a market-based adjustment mechanism for deposit interest rates，fullplay depositinterest rateMarketizationThe function of self-discipline mechanismfocusing on stabilizing the cost of bank liabilities,to playsustained releaseEfficiency of interest rate reform in loan market quotesand mentoringto promote the reduction of comprehensive financing costs of enterprisesand personal consumption credit costs. Steadily deepen market-oriented exchange rate reforms, improve the managed floating exchange rate system based on market supply and demand and adjusted with reference to a basket of currencies,insisting that the market plays a decisive role in the formation of exchange rates,Enhance the flexibility of the RMB exchange rate, strengthen expectation management, adhere to bottom-line thinking, do a good job in monitoring and analysis of cross-border capital flows and risk prevention, maintain the basic stability of the RMB exchange rate at a reasonable and balanced level, and use the exchange rate to adjust the macro economy and the automatic stabilizer of the balance of payments Function. Further develop the foreign exchange market, guide enterprises and financial institutions to establish the concept of “risk neutrality”, guide financial institutions to actively provide exchange rate hedging services for small, medium and micro enterprises based on the principle of actual needs and risk neutrality,Reduce exchange rate hedging costs for small, medium and micro enterprisesTo maintain the stable and healthy development of the foreign exchange market.Continue to be prudentorderlyPromote the internationalization of RMB, further expand the use of RMB in cross-border trade and investment, deepen foreign currency cooperation, and support the offshore RMB marketHealthy and orderly development. Continue to improve the level of liberalization and facilitation of cross-border trade and investment, and steadily promote the convertibility of RMB capital accounts.
Fifth, continue to deepen financial reform and accelerate the construction of a financial market system. Continue to promote the reform of development-oriented and policy-oriented financial institutions, realize business classification management and separate accounting, strengthen capital constraints, strengthen risk management, improve incentive mechanisms, consolidate the main responsibility of institutions, and better play their role in serving the real economy and serving national strategies important role.Completeadvance furtherThe legal system construction of the bond market will consolidate the legal basis for corporate credit bonds.Sound and efficient connectivity.Speed up the buildmulti-level bond market system,Continue to expand the pilot program of financial bond balance management and macro-prudential management，speed up commercial bankingpromoteOTC bond market development, improving bond market liquidity,Form a more continuous and effective secondary market price。Increase the bond market’s innovative support for key areas and weak links, and improve the quality and efficiency of the bond market’s service to the real economy.Strengthen bond market supervision，Further improve the bond underwriting and market-making mechanism, strengthen the linkage between the primary and secondary markets, and improve the effectiveness and transmission function of bond pricing.Adhere to the principles of marketization and the rule of law, continue to implement the concept of “zero tolerance”, and increase efforts to investigate and deal with violations of laws and regulations in the bond market.Prevent and resolve bond market risks in a timely manner.We will unswervingly promote the opening up of the bond market.
The sixth is to improve the financial risk prevention, early warning, disposal, and accountability system, and build a long-term mechanism for preventing and defusing financial risks.Strengthen the construction of the financial rule of law, taking the opportunity of enacting the Financial Stability Law and establishing the Financial Stability Guarantee Fund。Further improve and solidify the long-term mechanism for financial risk prevention, resolution, and disposal, and promote the marketization, rule of law, and normalization of the resolution mechanism.Further improve the macro-prudential policy framework, improve systemic risk monitoring, assessment and early warning capabilities, and enrich the macro-prudential policy toolbox. Improve the supervision of systemically important financial institutions, promote systemically important banks to meet additional regulatory requirements on time, accelerate the establishment and improvement of total loss absorption capacity of my country’s global systemically important banks, and effectively improve risk resistance capabilities. Coordinating and supervising financial holding companies,Steadily promote non-financial enterprises that have established conditions to apply for the establishment of financial holding companies in accordance with the law,Continuously improve the relevant regulatory system and promote the sound, standardized and sustainable development of financial holding companies.Strengthen the construction of the financial rule of law, take the opportunity of enacting the Financial Stability Law and the establishment of the Financial Stability Guarantee Fund, further streamline and improve the long-term mechanism for preventing, resolving, and disposing of financial risks, and promote the marketization, legalization, and normalization of the resolution mechanism。Promote the improvement of the effectiveness of supervision, continue to strengthen the prudential supervision and behavior supervision of the financial industry, and strengthen the protection of consumers and investors.Pay close attention to risks in key areas,Improve the forward-looking, timeliness and effectiveness of risk identification,Continue to follow the guidelines of “stabilizing the overall situation, overall planning and coordination, classified policies, and precise bomb disposal”, do a good job in preventing and defusing financial risks, reduce existing risks, and strictly control incremental risks. Further deepen the early correction and risk disposal functions of deposit insurance, give play to the incentive and restraint role of risk differential rate, and improve the authority of early correction.continuedConsolidate the main responsibilities of financial institutions and their shareholders, local territorial responsibilities, and financial management departments’ regulatory responsibilities, form a joint force for risk disposal, and ensure the effective implementation and implementation of disposal measures. Improve the financial risk accountability mechanism, strictly pursue accountability for major financial risks, and effectively prevent moral hazard. Resolutely hold the bottom line of avoiding systemic financial risks.
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