China News Service, Beijing, March 21 (Reporter Xia Bin) The China Development Forum 2021 Annual Meeting will be held simultaneously online and offline at the Diaoyutai State Guesthouse in Beijing from 20 to 22. The Governor of the People's Bank of China, Yi Gang, said at the annual meeting, China has a lot of room for monetary policy regulation.

China's monetary policy has always been maintained within a normal range, with adequate tools and means, and moderate interest rates.

"We need to cherish and make good use of the normal monetary policy space, and maintain policy continuity, stability and sustainability."

　　Yi Gang pointed out that the current broad money (M2) growth rate is about 10% year-on-year, which basically matches the nominal GDP growth rate. The 10-year treasury bond yield is about 3.2%, and the open market 7-day reverse repurchase rate is 2.2%.

In 2020, the consumer price index (CPI) rose 2.5% year-on-year.

It can be seen from the above figures that China’s monetary policy is within a normal range and has room for providing liquidity and an appropriate level of interest rates.

　　Yi Gang said that monetary policy should pay attention to both total volume and structure, and strengthen targeted support for key areas and weak links.

On the basis of maintaining an overall reasonable and sufficient liquidity, monetary policy can play a certain degree of directional support in key areas of the national economy, weak links, and social undertakings.

Since the new crown pneumonia epidemic, the central bank has implemented a number of measures to effectively help small and medium-sized enterprises maintain employment stability.

　　Yi Gang also said that monetary policy needs to balance between supporting economic growth and preventing risks.

China's macro-leverage ratio has remained basically stable. While providing positive incentives for economic entities, it also restrains the growth and accumulation of financial risks.

　　At the same time, monetary policy needs to create a suitable environment for deepening financial reform and opening up.

Yi Gang said that at present, we must implement a sound monetary policy, support the stabilization of enterprises to ensure employment, continue to fight for the prevention and resolution of major financial risks, and further deepen financial reform and opening up.

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