People's Bank of China: There is still room for reduction in the statutory deposit reserve ratio

　　China News Service, March 21 (Xinhua) The State Council Information Office held a press conference on recent investment, fiscal, and financial related data and policies on the 21st. Xuan Changneng, deputy governor of the People's Bank of China, said at the meeting that my country's monetary policy has sufficient There is policy space and abundant tool reserves. There is still room for the statutory deposit reserve ratio to fall. The decline in deposit costs and the shift in monetary policy in major economies are conducive to broadening the autonomy of interest rate policy operations. The establishment of technological innovation and technological transformation re-lending will help high-end The accelerated development of manufacturing and the digital economy.

　　Xuanchangneng introduced that since the beginning of this year, the People's Bank of China has intensified macroeconomic policy control, adopted a prudent monetary policy that is flexible, appropriate, precise and effective, and strives to expand domestic demand, boost confidence, and create a suitable monetary and financial environment for economic recovery.

　　In terms of total volume, we will maintain reasonable growth and a steady pace of money, credit and financing.

While flexibly adjusting the medium-term lending facility (MLF) and open market operations, it also lowered the reserve requirement ratio by 0.5 percentage points at the beginning of the year, releasing more than 1 trillion yuan of long-term liquidity at one time, fully ensuring the supply of liquidity in terms of quantity.

At the same time, we will focus on guiding financial institutions to strengthen balanced lending, prevent increased credit fluctuations and excessive "good start", and provide stable and sustainable financial support for the economy.

　　In terms of structure, we will continue to optimize the credit structure and focus on improving efficiency.

Technological innovation, advanced manufacturing, green development, etc. are all important areas that reflect high-quality development. The People's Bank of China continues to implement re-loans to support carbon emission reduction. The 500 billion yuan of mortgage supplementary loans (PSL) added in December last year have also been fully extended. We will also set up re-loans for technological innovation and technological transformation to continuously improve the effectiveness of promoting economic structural adjustment, transformation and upgrading, and conversion of old and new driving forces, and do a good job in the "five major articles" of finance.

At the same time, efforts will be made to revitalize existing financial resources, promote effective investment, and help resolve excess production capacity.

　　In terms of price, we will promote a steady decline in comprehensive social financing costs and maintain a stable RMB exchange rate.

Facing the constraints of domestic bank deposit and loan interest rate spreads and domestic and overseas interest rate spreads, the People's Bank of China has continued to achieve the effect of cost reduction through a combination of policies.

Driven by previous policies that guided banks to lower deposit interest rates and reduce re-lending and rediscount rates to support agriculture and small businesses, the market quoted interest rate (LPR) for loans with maturities of more than 5 years fell by 0.25 percentage points in February, which was the largest drop since the LPR reform. Effectively drive the continued decline of loan interest rates.

At the same time, it not only insists that the market plays a decisive role in the formation of exchange rates and gives full play to the regulatory function of exchange rates on the macroeconomy and the balance of payments, but also strengthens the guidance of expectations and prevents the risk of exchange rate overshooting, maintaining the basic stability of the RMB exchange rate under complex circumstances.

　　Xuanchangneng said that monetary policy has achieved remarkable results, and the quality and efficiency of financial support for the real economy have continued to improve.

There are the following aspects: First, the total volume grows reasonably.

At the end of February, M2, social financing scale, and RMB loans maintained rapid growth of 8.7%, 9.0%, and 10.1% respectively, in line with market expectations.

Second, the support for the “Five Big Articles” has been strengthened.

At the end of February, inclusive small and micro loans increased by 23.1% year-on-year. The year-on-year growth rates of medium and long-term loans for manufacturing and high-tech manufacturing were 28.3% and 26.5% respectively. More financial resources are flowing to key areas such as high-quality development.

Third, financing costs have fallen and the exchange rate has stabilized.

The weighted average interest rate for corporate loans in February was 3.72%, down 0.13 percentage points year-on-year. The RMB-USD exchange rate has been stable at around 7.2 yuan since February, taking into account internal and external balance.

　　Xuanchangneng revealed that my country’s monetary policy has sufficient policy space and rich tool reserves. There is still room for the statutory deposit reserve ratio to decline. The decline in deposit costs and the shift in monetary policy of major economies are conducive to broadening the autonomy of interest rate policy operations. The establishment of Re-loans for technological innovation and technological transformation will help accelerate the development of high-end manufacturing and the digital economy.

In the next stage, the prudent monetary policy will continue to be flexible, appropriate, precise and effective, reasonably grasp the relationship between the two largest financing markets, bonds and credit, maintain reasonable and sufficient liquidity, promote the stabilization and decline of corporate financing and residents' credit costs, and continue to do a good job in " "Five Big Articles", intensify efforts to revitalize existing financial resources, maintain the basic stability of the RMB exchange rate at a reasonable and balanced level, and balance the relationship between short-term and long-term, stable growth and risk prevention, internal equilibrium and external equilibrium.