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The second quarter of the 2018 (the 81st) regular meeting of the Monetary Policy Committee of the People's Bank of China was held in Beijing on June 27.
It is worth noting that the meeting mentioned that a prudent monetary policy should remain neutral, be moderate and appropriate, manage the main gate of money supply, maintain a reasonable liquidity, and guide the reasonable growth of money and credit and social financing.
Comparing the "China Monetary Policy Implementation Report" in the first quarter, we can find that the changes in the liquidity expression have also been formally changed from "keeping liquidity reasonably stable" to "maintaining sufficient liquidity." (推荐阅读>>>About the renminbi, liquidity, foreign trade, this is the five major signals passed by the central bank in the second quarter of the regular meeting.)
Maintain ample liquidity
The meeting analyzed the economic and financial situation at home and abroad.
The reporter noted that the meeting pointed out that it is necessary to continue to pay close attention to the international and domestic economic and financial trends, and strengthen the pre-judgment of the situation and the prospective pre-adjustment and fine-tuning. The prudent monetary policy should remain neutral, and it should be moderately tight, manage the general gate of money supply, maintain a reasonable liquidity, and guide the reasonable growth of money and credit and social financing.
We will continue to deepen the reform of the financial system, improve the dual-pillar regulatory framework for monetary policy and macro-prudential policies, and unblock the channels for transmission of monetary policy. In accordance with the requirements of deepening supply-side structural reforms, the financing structure and credit structure will be optimized to enhance the economic capabilities of financial services entities. Actively and orderly expand the financial opening up and enhance the vitality and resilience of the financial industry.
Earlier, the "China Monetary Policy Implementation Report" issued by the central bank (first quarter of 2018) pointed out that the implementation of a sound and neutral monetary policy, focus on guiding expectations, maintaining a reasonable and stable liquidity, and providing supply-side structural reform and high-quality development. Create a moderately moderate monetary and financial environment.
The change before and after is that this time, after the expression of the stable neutral monetary policy, it is clearly stated that “the tightness is moderate”, which was not available last time.
Changes in the formulation of liquidity have also been formally changed from “keeping liquidity to be reasonably stable” to “maintaining sufficient liquidity”.
It is worth noting that the Central Bank's Monetary Policy Committee in the fourth quarter of 2017 pointed out that the implementation of a sound and neutral monetary policy, effectively control the main gate of money supply, comprehensive use of multiple monetary policy tools, to maintain a reasonable scale of money and credit and social financing Growth, maintaining a reasonable and stable liquidity, improving the efficiency of financial operations and serving the real economy, and effectively controlling the macro leverage ratio.
Among them, "effectively controlling the main gate of money supply" has now become "management of the main gate of money supply."
"Daily Economic News" reporter noted that on June 13 this year, the Fed announced another 25 basis points rate hike, but the Chinese central bank did not respond accordingly, but announced on June 24, since July 5 The target is lowered by 0.5 percentage points. Then on June 25th, the amount of re-loans and rediscounts for small-scale farmers was increased by 150 billion yuan, and the interest rate for small loans was reduced by 0.5 percentage points.
Zhang Shiyuan, chief economist of Southwest Securities, said in an interview with the reporter of "Daily Economic News" that the domestic economy is still in the process of structural adjustment and transformation and upgrading. Before the new economic kinetic energy does not form a good support, it needs reasonable liquidity. To protect the economic development.
Structural adjustments in the financial sector are now undergoing positive changes
At the same time, the meeting indicated that China's current economic fundamentals are good, economic growth remains resilient, overall supply and demand are balanced, and growth momentum is accelerating. The pull of domestic demand on the economy continues to rise, the dependence on foreign trade has dropped significantly, and the ability to cope with external shocks has increased. The sound and neutral monetary policy has achieved good results, structural de-leverage has been steadily advanced, financial risk prevention and control has achieved initial results, and financial support for the real economy has been relatively stable. The structural adjustments in the domestic economic and financial fields have undergone positive changes, but there are still some deep-seated problems and prominent contradictions. The international economic and financial situation is more complicated and faces some serious challenges and uncertainties.
The meeting also emphasized that we should conscientiously implement the spirit of the 19th National Congress of the Communist Party of China and the work report of the government in the new era of Xi Jinping's socialist economic thoughts, continue to follow the decision-making arrangements of the Party Central Committee and the State Council, and adhere to the general tone of steady progress. Comprehensively use a variety of monetary policy tools, grasp the strength and rhythm of structural de-leverage, promote stable and healthy economic development, stabilize market expectations, lay a good foundation for preventing and defusing financial risks, and defending against the bottom line of systemic financial risks.
The meeting was chaired by Yi Gang, President of the People's Bank of China and Chairman of the Monetary Policy Committee. Monetary Policy Committee members Lian Weiliang, Liu Wei (Ministry of Finance), Chen Yulu, Liu Guoqiang, Ning Jizhen, Guo Shuqing, Liu Shiyu, Pan Gongsheng, Tian Guoli Liu Shijin and Ma Jun attended the meeting.