Central Bank Report: Prudent monetary policy has achieved remarkable results involving 9 trillion yuan in monetary funds
Xinhua News Agency, Beijing, November 26 (Reporter Wu Yu) According to a report released by the People’s Bank of China on the 26th, the central bank has introduced monetary policy response measures involving 9 trillion yuan in monetary funds since the beginning of this year. The economic profit is about 1.25 trillion yuan.
The prudent monetary policy has achieved remarkable results, the transmission efficiency has been further improved, and the financial support of the real economy has been stable.
In response to the impact of the epidemic, after the opening of the financial market this year, the central bank provided short-term liquidity of 1.7 trillion yuan, lowered the deposit reserve ratio three times in the first nine months, and released 1.75 trillion yuan in long-term funds.
The Bank of Japan issued a report on China’s monetary policy implementation for the third quarter of 2020, which stated that through lowering the statutory deposit reserve ratio, facilitating medium-term lending operations, and open market operations, liquidity will be maintained reasonable and sufficient, and market interest rates will operate smoothly. The issuance of special government bonds has created a suitable liquidity environment.
Since the beginning of this year, the central bank has introduced a 1.8 trillion yuan re-lending and rediscount policy on a level-by-level and gradient basis, which has played a positive role in supporting epidemic prevention and control, resuming work and production, and protecting market entities.
The report shows that the 300 billion yuan special re-lending and 500 billion yuan re-lending and rediscount policies have successfully concluded at the end of June.
As of the end of September, over 80% of the 1 trillion yuan re-lending and rediscount policy has been implemented.
In June of this year, the central bank created two monetary policy tools that directly reach the real economy.
The report shows that from June to September, the inclusive small and micro enterprise loan extension support tool has supported the inclusive small and micro enterprise loan deferred principal amount of 469.5 billion yuan.
From March to September, the Inclusive Small and Micro Enterprise Credit Loan Support Program has supported the issuance of a total of 264.6 billion yuan in small and micro enterprise credit loans.
According to the report, in the first 10 months, the financial sector gave about 1.25 trillion yuan in profits to the real economy through measures such as lowering interest rates, reducing fees, and deferring loan repayments. The goal of 1.5 trillion yuan can be achieved throughout the year.
The People's Bank of China stated that in the next step, a prudent monetary policy will be more flexible, moderate, and precise, and will pay more attention to the quality and efficiency of financial services to the real economy.
In accordance with the macro situation and market needs, scientifically grasp the intensity, rhythm and focus of monetary policy operations to maintain reasonable and sufficient liquidity and prevent the market from being short of money, but also resolutely refrain from "overflowing" and prevent the market from overflowing money.