The Monetary Policy Committee of the Central Bank: Grasp the rhythm and intensity of monetary policy

The Monetary Policy Committee of the Central Bank: Grasp the rhythm and intensity of monetary policy Xinhuanet The Monetary Policy Committee of the People's Bank of China held a regular meeting for the second quarter of 2011 recently...

Xinhuanet

The Monetary Policy Committee of the People's Bank of China held a regular meeting for the second quarter of 2011 recently, emphasizing the need to implement a sound monetary policy, pay attention to the stability, pertinence and flexibility of the policy, and grasp the rhythm and intensity of the policy.

The meeting pointed out that it is necessary to comprehensively use a variety of monetary policy tools, improve the macro-prudential policy framework, effectively manage liquidity, and maintain a reasonable scale of social financing and total currency. Efforts should be made to optimize the credit structure and guide commercial banks to increase credit support for key areas and weak links, especially credit support for "agriculture, rural areas and farmers" and small and medium-sized enterprises. It is necessary to continue to play the role of direct financing to better meet diversified investment and financing needs. Further improve the RMB exchange rate formation mechanism and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

The meeting analyzed the current domestic and international economic and financial situations. The meeting held that my country's current economic and financial operations are developing in the direction predetermined by macro-control, but the situation facing economic and financial development is still complex. The world economy continues to recover slowly, but there are still many risk factors; my country's economy continues to develop steadily and rapidly, but inflationary pressure is still at a high level.

>What kind of signal does the central bank's monetary policy committee statement release after the regular meeting?

The second quarter regular meeting of the People's Bank of China's monetary policy committee held recently pointed out that it is necessary to implement a sound monetary policy, pay attention to the stability, pertinence and flexibility of the policy, and grasp the pace and intensity of the policy.

The reporter noticed that compared with the post-meeting statement of the last regular meeting, this regular meeting proposed for the first time to continue to "implement a sound monetary policy" and at the same time, it was proposed to grasp the rhythm and intensity of the policy. At the same time, compared with the statement of the first-quarter regular meeting, the second-quarter regular meeting paid more attention to the financing issues of small and medium-sized enterprises. The meeting emphasized that efforts should be made to optimize the credit structure and guide commercial banks to increase credit support for key areas and weak links, especially credit support for "agriculture, rural areas and farmers" and small and medium-sized enterprises.

"This is a reasonable decision made by the central bank based on subtle changes in the current economic situation." Guo Tianyong, director of the China Banking Research Center at the School of Finance, Central University of Finance and Economics, analyzed that under the current macroeconomic conditions, the tone of my country's prudent monetary policy should not change. However, considering that problems such as financing difficulties for small and medium-sized enterprises and tight capital chains in economic development are deteriorating, the intensity and pace of monetary policy implementation will be more prudent in the next step.

Central Bank: Inflation pressure in my country is still at a high level

The 2011 second quarter regular meeting of the Monetary Policy Committee of the People's Bank of China was held in Beijing a few days ago. The meeting held that the current inflationary pressure is still at a high level and prudent monetary policy must be implemented. Analysts believe that the information conveyed from this meeting shows that the future inflation trend is not optimistic, and it is difficult to see a policy change in the short term. The central bank is likely to continue to raise interest rates in July.