The People's Bank of China: Deepen the market-oriented reform of the exchange rate and enhance the flexibility of the RMB exchange rate
China News Service, Beijing, June 28 (Reporter Xia Bin) The People's Bank of China announced on the 28th that the 2021 second quarterly regular meeting of the Monetary Policy Committee of the People's Bank of China will be held in Beijing recently.
The meeting pointed out that it is necessary to deepen the reform of exchange rate marketization, strengthen the flexibility of the RMB exchange rate, guide enterprises and financial institutions to adhere to the concept of "risk neutrality", strengthen anticipation management, promote internal and external balance, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.
The meeting held that since the beginning of this year, China has coordinated efforts to promote epidemic prevention and control and economic and social development, and has vigorously implemented macroeconomic policies, and the overall national economy has continued to stabilize and recover.
The prudent monetary policy maintains continuity, stability and sustainability, scientifically manages market expectations, vigorously serves the real economy, and effectively prevents and controls financial risks.
At the same time, the dividends of the interest rate reform of the loan market quotation continued to be released, the transmission efficiency of monetary policy was enhanced, the loan interest rate was stable with a decrease, the RMB exchange rate was expected to be stable, the two-way floating flexibility was enhanced, and the function of a macroeconomic stabilizer was exerted.
The meeting pointed out that it is necessary to improve the market-based interest rate formation and transmission mechanism, improve the central bank's policy interest rate system, optimize deposit interest rate supervision, adjust the method of determining the deposit interest rate self-discipline upper limit, continue to release the potential of loan market quote interest rate reform, and promote further reduction of actual loan interest rates.
The meeting also mentioned that it is necessary to build a financial system to effectively support the real economy, improve the financial support innovation system, guide financial institutions to increase medium and long-term loans to manufacturing, and strive to achieve financial support for private enterprises and private enterprises’ contribution to economic and social development. Correspondingly, research and establish carbon emission reduction support tools to improve the green financial system with the goal of promoting carbon peak and carbon neutrality.
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