(Fighting New Crown Pneumonia) Deputy Governor of the People's Bank of China: China has a lot of room for monetary policy
China News Agency, Beijing, February 27th (Reporter Liu Yuying) At the press conference of the joint prevention and control mechanism of the State Council of China held on the 27th, Vice President Liu Guoqiang of the People's Bank of China said that the epidemic has an impact on the global economy, but The impact is short-term.
On February 27, the State Council's joint prevention and control mechanism for the response to the new coronavirus infection and pneumonia epidemic held a press conference in Beijing to introduce relevant conditions to support the development of small and medium-sized enterprises and increase support for individual industrial and commercial households. Liu Guoqiang, deputy governor of the People's Bank of China, said that the epidemic now has an impact on the global economy, but the impact of the epidemic is short-term. China's monetary policy space is relatively large, and it will be able to meet various challenges in the future. China News Agency reporter Zhang Yushe
"Now the epidemic has an impact on the global economy," Liu Guoqiang said. For example, trade, the industrial chain, and financial markets have all been affected. However, on the other hand, it is more common now that the impact of the epidemic is short-term and does not change the fundamentals or long-term trends.
Liu Guoqiang said that China is the second largest economy in the world. China's economic growth plays an important role in driving the global economy. The Chinese economy is good and it is an important support for global economic stability.
"From a monetary policy perspective, we must adhere to a stable monetary policy orientation. China is now one of the few countries that maintains a normalized monetary policy. Many countries have adopted unconventional monetary policies and zero interest rates. There is still a long way to go for monetary policy. "Liu Guoqiang said that China's policy space is relatively large and it will be able to meet various challenges in the future.
Liu Guoqiang said that it is necessary to keep the monetary policy flexible and appropriate according to the current economic situation, and to scientifically and steadily grasp the counter-cyclical adjustment efforts. For example, the 300 billion yuan (RMB, the same below) special reloans, and the 500 billion yuan reloan rediscount quota, these policies have obvious structural characteristics. In terms of total volume, it maintains reasonable and sufficient liquidity through standing borrowing facilities, medium-term borrowing facilities, open market operations, and targeted reduction of inclusive finance.
According to reports, by February 25, 1008 key enterprises for epidemic prevention and control had obtained loans. After the fiscal discount, the effective interest rate for these loans is 1.28%.
"At present, the 7-day repo rate in the interbank market is about 2.2%, which remains stable. The stock market and foreign exchange market are a bit flexible and generally stable." Liu Guoqiang said. (Finish)