[Explanation] On March 22, the Information Office of the State Council held a press conference to introduce the situation in response to the impact of the international epidemic and maintaining the stability of the financial market. At the meeting, Chen Yulu, deputy governor of the People's Bank of China, introduced that the financial system quickly introduced a series of policies and measures in response to the epidemic prevention and control and the need for enterprises to resume work and resume production, with significant results. He said that China's national economy has withstood the impact of the epidemic and has also made a significant contribution to global economic and financial stability. The fundamentals of China's long-term positive economy have not changed.
[Concurrent] Chen Yulu, Vice President of the People's Bank of China
Through accurate operation of the open market and continuous targeted reduction, the People's Bank of China provided timely special refinancing loans of 300 billion yuan and rediscount redemption quotas of 500 billion yuan to effectively and accurately support epidemic prevention and control, and resume work and resume production. The operation of China's (China) financial system is generally stable, the financial (market) expectations are stable, the rapid growth of the financial services industry, and the steady recovery of the national economy have also contributed significantly to the stability of the global economy and finance. The fundamentals of China's long-term positive economy have not changed.
[Explanation] Chen Yulu pointed out that the recent international epidemic has spread and the international financial market has become more turbulent. China's financial market has shown a high degree of stability with small fluctuations.
[Concurrent] Chen Yulu, Vice President of the People's Bank of China
Judging from the actual situation, after the turbulence in the international financial market, China's (China) financial market has withstood the test, showing a high degree of stability and small fluctuations. The reason for this is that one is to prevent and resolve major risks, to advance the supply-side structural reforms in the financial sector, and the effectiveness of the high-level expansion of the financial industry in opening up to the outside world, which has greatly enhanced the soundness of China's financial system. The second is that the financial market runs smoothly and steadily after the market is opened as scheduled, and the infrastructure of various financial markets also runs safely and steadily, which has greatly enhanced investor confidence. The third is that after the epidemic, flexible and appropriate monetary and financial regulatory policies were put in place quickly and effectively, and the real economy, especially the regions affected by the epidemic, and small, medium, and micro-sized, and private enterprises were given strong and accurate support to stabilize the economy .
[Explanation] Regarding the future CPI trend, Chen Yulu said that the impact of the epidemic on supply and inflation will continue in the short term. However, as China ’s national defense epidemic situation continues to improve, the national economy resumes work and resumes production, and the overall price trend will gradually ease. It is expected that prices will decline quarter by quarter in the second, third, and fourth quarters.
[Concurrent] Chen Yulu, Vice President of the People's Bank of China
It should be said that the impact of the epidemic on supply and inflation may continue for a short period of time. Whether or not prices can be stabilized still depends on the fundamentals of our economy. At present, China (China) 's macroeconomic operation is stable, and aggregate supply and demand are basically balanced, so there is no basis for long-term inflation or long-term deflation. With the continued improvement of the epidemic prevention and control situation in China (China), the resumption of production and resumption of the national economy continues to be in place, and the shortage of commodities will gradually keep up the production of pigs. Therefore, we can see that the overall price situation will gradually ease, and in the second, third, and fourth quarters it is expected that there will be a quarterly decline.
Lang Jiahui reports from Beijing
Editor-in-chief: [Tao Guangxiong]