China's central bank emphasizes that monetary policy "does not make a sharp turn" to focus on seven key points in the next stage
China News Service, Beijing, February 9th (Reporter Wei Xi) On the evening of the 8th, the People’s Bank of China released the “Report on China’s Monetary Policy Implementation in the Fourth Quarter of 2020”, proposing that a prudent monetary policy “do not make a sharp turn, and grasp the timeliness of the policy. We must handle the relationship between economic recovery and risk prevention, and maintain the sustainability of the normal monetary policy space."
The central bank proposed that the next stage will focus on seven key points.
First, a prudent monetary policy must be flexible, precise, reasonable and appropriate.
Comprehensive use of medium-term lending facilities, open market operations, re-lending, rediscounting and other monetary policy tools to meet the reasonable short-term, mid-term and long-term liquidity needs of financial institutions. The operation is accurate and effective, and both maintain reasonable and sufficient liquidity. Engage in flood irrigation.
Improve the central bank's long-term mechanism for regulating the liquidity, capital and interest rate constraints created by the bank's currency, keep the money supply gates in place, and keep the economy near potential output.
The second is to make good use of the precise drip irrigation of re-lending, rediscounting and monetary policy tools that directly reach the real economy.
On the one hand, continue to implement the two monetary policy tools that directly reach the real economy, the inclusive small and micro enterprise deferred debt service and the inclusive small and micro enterprise credit loan support program; Support in the field.
The third is to build an institutional mechanism for finance to effectively support the real economy.
Improve the financial support innovation system, form a virtuous circle and triangular interaction between finance, technology and industry, and promote the large-scale application of new technology industrialization.
Increase credit investment in key agricultural areas such as seed industry development and food security.
Broaden the scope of collateral in rural areas in accordance with laws and regulations.
Firmly insist on the positioning that houses are used for living, not for speculation, and insist on not using real estate as a short-term means of stimulating the economy.
The fourth is to deepen the market-oriented reform of interest rates and exchange rates, and unblock the transmission channels of monetary policy.
At the same time, it regulates deposit interest rate pricing, strengthens deposit management, and prohibits local corporate banks from opening deposits in other places.
The fifth is to strengthen the construction of the basic system of the financial market, steadily promote the two-way opening of the bond market, and introduce more mid- and long-term investors.
Sixth, further advance the reform of financial institutions.
Including: guiding the focus of large banks to sink, improve efficiency, and better serve small and micro enterprises, private enterprises, etc.
Seven is to improve the financial risk prevention, early warning, handling, and accountability systems.
Resolutely curb the rebound of various risks, and resolutely prevent local risks from developing into systemic risks and regional risks from developing into national risks.
(Finish)