China News Service, July 13. The State Council Information Office held a press conference on the financial statistics for the first half of 2022 on the 13th. At the meeting, a reporter asked: How does the People's Bank of China judge the economic trend in the second half of the year?

Are there adequate tools to deal with unexpected changes?

Are there any plans to cut interest rates or RRR cuts?

　　Zou Lan, director of the Monetary Policy Department of the People's Bank of China, said that in recent years, we have insisted on implementing a normal monetary policy, leaving sufficient policy space and tool reserves to cope with new challenges and changes that exceed expectations.

In the second half of the year, the People's Bank of China will continue to implement a sound monetary policy and speed up the implementation of the established policy measures

.

Including: implementing various structural monetary policy tools introduced in the early stage, guiding financial institutions to enhance the ability of financial services to serve the real economy in accordance with the principles of marketization and the rule of law; guiding policy development banks to implement the new 800 billion yuan of credit scale and Set up 300 billion yuan of financial instruments to support infrastructure construction; it also includes the early completion of the annual transfer of surplus profits to the central government to help stabilize the economic market, stabilize employment and protect people's livelihood.

　　Zou Lan said about the reduction of the reserve ratio and interest rate.

At present, the weighted average 7-day repurchase interest rate of depository institutions in the inter-bank market, which is what we often call DR007, is currently around 1.6%, which is lower than the open market operation rate, and the liquidity is maintained at a relatively reasonable and sufficient level but slightly too high. From January to June, the corporate loan interest rate was 4.32%, a year-on-year decrease of 0.31 percentage points.

In the future, the People's Bank of China will, in accordance with the deployment of the Party Central Committee and the State Council, comprehensively consider economic growth, price situation and other fundamentals, rationally match monetary policy tools, maintain reasonably sufficient liquidity, further promote financial institutions to reduce corporate financing costs, and create suitable opportunities for consolidating economic recovery. monetary and financial environment.

　　Zou Lan said that the People's Bank of China is highly concerned about the accelerated tightening of monetary policies in major economies.

In the early stage, measures such as adjusting the foreign exchange deposit reserve ratio and strengthening the macro-prudential management of cross-border capital flows have been adopted for forward-looking responses, which have reduced the negative spillover impact caused by changes in the external environment to a certain extent.

The RMB exchange rate fluctuated in both directions and remained at a reasonable level, and cross-border capital flows were generally stable.

At the same time, as a super-large economy, China's

domestic monetary and financial conditions are mainly determined by domestic factors. The monetary policy will continue to adhere to the orientation of self-centeredness, taking into account internal and external balance

.

(Zhongxin Finance)