China News Service, April 1st. In response to the continuous rise in U.S. bond yields, Sun Guofeng, Director of the Central Bank’s Monetary Policy Department, pointed out that whether it is the Fed’s large-scale monetary stimulus measures launched last year or the future adjustment of the Fed’s monetary policy, it will affect China’s financial market. The impact is relatively small.
On April 1, the State Information Office held a press conference and answered reporters’ questions on the establishment of a new development pattern and financial support for regional coordinated development.
At the meeting, a reporter asked questions and said that U.S. bond yields continue to rise, and inflation expectations in the United States are also very strong. Many people believe that the Fed's action to raise interest rates or shrink the balance sheet may come early, and some are worried about whether it will produce a certain amount. What kind of impact will the spillover effect have?
Sun Guofeng said that my country is the only major economy in the world to achieve positive growth in 2020, and it is also one of the few major economies that implement normal monetary policies, which has driven the recovery of the global economy and supported the normalization of the monetary policies of other major economies. effect.
Recently, U.S. bond yields have risen, breaking through 1.75% at one time, pushing the appreciation of the U.S. dollar. The U.S. dollar index has risen by about 2.4% year-to-date. Affected by this, the risks of debt repayment and refinancing in some emerging economies have increased, and the pressure on currency devaluation has increased. The economy has raised interest rates and financial markets have experienced certain fluctuations.
"Our country has always adhered to a normal monetary policy. From February to April last year, we took more intensive response measures. After May, monetary policy operations have returned to normal, which not only strongly supports epidemic prevention and control and economic and social development, but also did not engage in large-scale development. We can see that China’s national debt yield level has remained stable after the rebound at that time, and the two-way floating of the RMB exchange rate has become the norm, playing the role of an automatic stabilizer of macroeconomic and international payments. Therefore, regardless of Whether the Fed launched a large-scale monetary stimulus measure last year or the Fed adjusts its monetary policy in the future, the impact on China's financial market will be relatively small." Sun Guofeng said.
Sun Guofeng also pointed out that, in fact, in the recent global financial markets, especially the financial markets of emerging economies, my country’s financial markets have been operating smoothly and the RMB exchange rate has fluctuated in both directions. The 10-year treasury bond yield is currently around 3.2%, compared with the previous period. There is still a drop.
The positive effects of my country's normal monetary policy are emerging.
Sun Guofeng said that the key to the next step is to do well in his own affairs. Monetary policy must be steady, steady, cherish the normal monetary policy space, and at the same time pay close attention to changes in the international economic and financial situation, and enhance the flexibility of the RMB exchange rate. To focus on the coordination of international macro policies and maintain the leading position of macro policies, we are also happy to see other economies seeking to return to normal monetary policies, which will help promote the long-term healthy development of the global economy.