Excessive use of structural tools will weaken the total amount tool?Central bank response

China Economic Net, Beijing, June 23. The Propaganda Department of the Central Committee of the Communist Party of China held a series of theme press conferences on the afternoon of June 23, 2022. Xiao Yuan Enterprise, Li Chao, vice chairman of the China Securities Supervision and Administration Commission, Wang Chunying, deputy director and spokesman of the State Administration of Foreign Exchange, introduced the reform and development of the financial sector since the 18th National Congress of the Communist Party of China, and answered reporters.

Reuters reporter: There are two questions. In the first question, what progress did the People's Bank of China have made in recent years to improve the monetary policy transmission mechanism? The second issue has recently introduced a series of structural policy tools in response to the economic impact of the epidemic, including promoting green development and promoting technological innovation. However, some people are worried that excessive use of structural tools will weaken the total amount of tools, and the use of quantitative tools will also affect the gradual transformation of monetary policy regulation to price -oriented. Excuse me, what are the people's banks commented on this? thanks.

Chen Yulu:

Thank you Reuters reporter. You have raised a more professional question, this problem is also a problem that many experts have been very concerned about in the near future. In recent years, the People's Bank of China has insisted on stable monetary policies in accordance with the decision -making and deployment of the Party Central Committee and the State Council, and continuously innovated and enriched monetary policy instruments. At the same time, it also pays more attention to the leverage of interest rates. The goal is to work hard to achieve a virtuous circle of real economy and finance. Practice has proved that the conduction efficiency of Chinese monetary policy has been significantly improved since the past period. Mainly three points:

First, the currency supply regulation mechanism is more complete. I also mentioned just now that we always insist on controlling the total currency gate and maintaining a reasonable and abundant liquidity. The M2 that you just talked about, as well as the growth rate of our social financing scale, has always maintained basically matching the growth rate of nominal GDP, supporting the operation of my country's national economy continued to achieve optimization combinations, that is, higher growth, lower inflation and more Optimization of employment.

Secondly, in the past ten years, we have gradually constructed a structural monetary policy tool system that conforms to China's national conditions. The focus is to support key areas and weak links in national economic development such as inclusive finance, green development, scientific and technological innovation. The introduction of these structural monetary policy tools has strongly supported the impact of effective response to the century epidemic, and at the same time actively implemented it. The new development concept promotes high -quality development of the national economy.

Third, we gradually improve the marketization of interest rates, regulation and conduction mechanisms. The focus is on the reform of the loan market quotation interest rate (LPR) and formed a new conduction mechanism, that is, the market interest rate and the central bank's guidance affect LPR, and then affect the loan interest rate. In terms of deposits, we have also established a market -oriented adjustment mechanism for deposit interest rates, that is, to guide the change of deposit interest rates to follow the changes in LPR and government bond yields to further promote the marketization of deposit interest rates.

Here, I want to point out a special point that structural monetary policy tools have dual functions of total regulation and structural adjustment. In other words, the policy effect of accurate drip irrigation through structural tools can also contribute to the regulation of total amount. On the one hand, when the People's Bank of China is designing structural policy tools, she insists on taking advantage of the trend, that is, in accordance with the principle of target consistency to establish an incentive compatibility mechanism, that is, the central bank's funds and financial institutions are put on specific fields and industry credit. Hook and mobilize the enthusiasm of financial institutions. In this way, the optimization of credit structure can be more effectively promoted. On the other hand, structural monetary policy tools also have basic currency investment functions, helping to maintain the liquidity of the banking system reasonable and abundant, and support the steady growth of credit.

Under the total framework of the People's Bank of China, the use of structural monetary policy tools will be "advanced and retreat" according to the focus of different periods and stages of economic development, which means that the number of structural monetary policy tools and the scale of investment in the scale The level of intention is to form a good cooperation with the total policy tools. At the same time, the market should also notice that the interest rate level of structural monetary policy tools is usually not very large from the market interest rate level, so it will not have much impact on the market -oriented interest rate system.

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