Yi Gang: The annual average increase in CPI was below 2%, and the normal monetary policy should be adhered to.
On June 10, at the 13th Lujiazui Forum, the Governor of the People's Bank of China Yi Gang focused on monetary policy, green finance and inclusive finance in his keynote speech.
Yi Gang said that since last year, despite the severe impact of the new crown pneumonia epidemic, if we look at the average of last year and this year, we predict that my country's GDP growth rate will be close to the potential growth rate.
In response to inflationary pressures, Yi Gang said that the prices of global crude oil and other bulk products have risen rapidly recently, and the short-term rise in global inflation has become a fact. However, there are huge disagreements on whether inflation can continue in the long-term.
"China persisted in implementing normal monetary policies during the epidemic last year, and domestic demand was relatively stable, which is conducive to maintaining overall price stability. Since the beginning of this year, China's PPI growth rate has been relatively high, which is to a certain extent related to the relatively low base formed by the negative growth of PPI last year. We can use the overall market for three consecutive years last year, this year and next year to observe the changes in PPI. Comprehensive factors to determine the trend of China’s CPI this year will be low and high. However, we predict that the average increase in CPI for the whole year will be 2 % Or less." Yi Gang said.
Yi Gang said that the external epidemic situation, the macro situation, and the macro policy are all uncertain, and the pressures of inflation and deflation from all quarters should not be taken lightly.
"Considering that our economy is operating in a reasonable range, near the potential output level, the price trend is generally controllable, the monetary policy should be adapted to the new development stage, adhere to the principle of stability, adhere to the implementation of normal policies, and especially focus on The cycle of supply and demand balances, and the strength and rhythm of the policy are well grasped." Yi Gang said.
Yi Gang said that although China's current interest rate level is higher than that of major developed countries, it is still relatively low in developing countries and emerging economies, and is generally maintained at an appropriate level, which is conducive to the stable and healthy development of various markets.
We must continue to deepen reforms to unleash the potential of interest rate reforms in the loan market.
It is necessary to continue to improve a managed floating exchange rate system based on market supply and demand, with reference to a basket of currencies, promote internal and external balance, and maintain the basic stability of the RMB exchange rate in a reasonable equilibrium.
On the premise of maintaining a moderate aggregate policy, the monetary and credit policy will mainly emphasize two major structural aspects. First, solidly promote the development of green finance.
Second, persist in developing inclusive finance.
The Paper, News Reporter Chen Yueshi