CCTV News: The People's Bank of China said that it will implement a moderately loose monetary policy this year, and a series of policies will be introduced to launch a "combination punch".
The central bank stated that this year's monetary policy should take into account multiple goals, not only strongly support the real economy, but also focus on preventing risks, but also crack domestic and foreign constraints such as China-US interest rate spreads and bank interest rate spreads. The policy should grasp a reasonable rhythm and intensity.
Dong Ximiao, chief researcher of China Merchants Union, said: "In combination with changes in the situation, all aspects of monetary policy, structure, interest rate, exchange rate, etc. will be reasonably balanced and coordinated to form a policy 'combination punch' effect."
Industry insiders said that since this year, the central bank has made many positive statements on monetary policy in terms of total volume, interest rate, structure, exchange rate, etc., which is conducive to further enhancing market confidence. In terms of total volume, there is still room for downward trend in the deposit reserve ratio, indicating that the central bank has the ability and willingness to increase macro-control and support the real economy.
In addition, in terms of structure, the central bank stated that it would study and create new structural policy tools, focusing on supporting investment and financing in the field of scientific and technological innovation, promoting consumption and stabilizing foreign trade. Wen Bin, chief economist of Minsheng Bank, said: "Increasing financial support for major strategies, key areas and weak links will help promote the smooth flow of macroeconomic circulation, accelerate the transformation of the economic structure, and cultivate new momentum."
In terms of exchange rates, the central bank has repeatedly stated that it is necessary to resolutely prevent the risk of exchange rate overshoot, have experience, confidence and ability to maintain the stable operation of the foreign exchange market.
The central bank stated that in the face of the macro environment, especially the uncertainties that may arise in the external environment, the central bank has reserved sufficient reserve tools and policy tools, and the total amount of monetary and credit still has potential. There are many positive factors that support the improvement of the economic situation in the future. With the continued implementation and effectiveness of more active and effective macroeconomic policies, the financial system will provide more favorable and effective support for the recovery and improvement of the real economy and high-quality development.
