China’s monetary policy implementation report in the second quarter of 2021 From People’s Bank of China

The following is the China’s monetary policy implementation report in the second quarter of 2021 From People’s Bank of China recommended by recordtrend.com. And this article belongs to the classification: Chinese economy, research report.

In the first half of 2021, the gross domestic product (GDP) increased by 12.7% year-on-year, with an average growth of 5.3% in two years, including a year-on-year growth of 7.9% in the second quarter and an average growth of 5.5% in two years, 0.5 percentage points higher than that in the first quarter; In the first half of the year, the consumer price index (CPI) rose by 0.5% year-on-year, the employment situation was generally stable, and the growth of import and export trade was good.

The people’s Bank of China adheres to the guidance of Xi Jinping’s socialist ideology with Chinese characteristics in the new era, and resolutely implements the decision making and deployment of the Party Central Committee and the State Council. It is stable in writing, prudent in monetary policy, flexible, precise and reasonable, and has a good inter cycle policy design. It keeps policy continuity, stability and sustainability, scientifically manages market expectations and persists in serving the real economy. Effectively prevent and control financial risks and create a suitable monetary and financial environment for high-quality economic development.

First, maintain reasonable and sufficient liquidity. We will make comprehensive use of various monetary policy tools such as RRR reduction, medium-term lending facilities and open market operation to flexibly and accurately carry out liquidity adjustment, maintain the stability of market expectations, guide the smooth operation of money market interest rates, and optimize the capital structure of financial institutions.

Second, give full play to the leading role of structural monetary policy tools. We will implement the extension of two monetary policy tools directly to the real economy, support regional coordinated development through comprehensive measures such as increasing re loans to provinces with slow credit growth, and strengthen policy support for areas requiring long-term support, such as scientific and technological innovation, small and micro enterprises, green development and manufacturing.

Third, continue to release the potential of the quoted interest rate reform in the loan market to promote the reduction of loan interest rates. Further promote the application of the quoted interest rate (LPR) in the loan market, optimize the supervision of deposit interest rate, adjust the self-discipline upper limit of deposit interest rate, determine the II method, and promote the steady decline of social comprehensive financing cost.

Fourth, we should focus on ourselves and grasp the balance between internal balance and external balance. We will deepen the market-oriented reform of the exchange rate, enhance the flexibility of the RMB exchange rate, strengthen the management of expectations, and give play to the role of the exchange rate in regulating the macro economy and the automatic stabilizer of the balance of payments.

Fifth, adhere to the principle of marketization and rule of law, coordinate development and security, effectively prevent and control financial risks, and firmly hold the bottom line of no systemic financial risks.

Overall, since the outbreak of the epidemic, China has adhered to the implementation of normal monetary policy. In the first half of this year, the strength of monetary policy has basically returned to the normal before the epidemic and maintained a leading position in global macro policies. At the end of June, broad money (M2) increased by 8.6% year-on-year, and the stock of social financing scale increased by 11% year-on-year. The credit structure continued to be optimized. At the end of June, the balance of Pratt & Whitney small and micro loans and medium and long-term loans in manufacturing industry increased by 31% and 41.6% year-on-year respectively. In June, the weighted average interest rate of loans was 4.93%, the lowest since statistics; The weighted average interest rate of enterprise loans was 4.58%, a decrease of 0.06 percentage points over the same period last year, and the comprehensive financing cost of small and micro enterprises decreased steadily.

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