Source: Finance Association
① The conference pointed out that the current external environment is becoming more complex and severe, the momentum for world economic growth is insufficient, inflation is falling at a high level but is still sticky, and interest rates in developed economies remain high. ② The conference believes that it is necessary to step up the implementation of the monetary policy that has already been introduced.
According to the central bank's website, the Monetary Policy Committee of the People's Bank of China held its regular meeting for the first quarter of 2024 (104th overall) in Beijing on March 29.
The conference analyzed the economic and financial situation at home and abroad. The conference believes that since this year, macroeconomic policies have maintained a steady lead, and that steady monetary policies are flexible, moderate, accurate and effective, strengthen countercyclical adjustments, and comprehensively use tools such as interest rates, reserves, and reloans to effectively serve the real economy, effectively prevent and control financial risks, and create an appropriate monetary and financial environment for the economy to recover and improve. The reform of quoted interest rates in the loan market has achieved remarkable results. The market-based adjustment mechanism for deposit interest rates has played an effective role, the transmission efficiency of monetary policy has increased, and social financing costs have continued to decline. Supply and demand in the foreign exchange market are basically balanced, current account surpluses are stable, foreign exchange reserves are sufficient, the RMB exchange rate fluctuates in both directions, and expectations are stabilizing. It maintains basic stability at a reasonable equilibrium level, and plays the role of a macroeconomic stabilizer.
The conference pointed out that the current external environment is becoming more complex and severe, the momentum for world economic growth is insufficient, inflation is falling from a high level but is still sticky, and interest rates in developed economies remain high. China's economic operation continues to improve, and high-quality development is progressing steadily, yet it is still facing challenges such as insufficient effective demand and weak social expectations. We must seek progress through steady progress, promote stability through progress, break first, and continuously consolidate the foundation for stability, moderation and improvement. Implement sound monetary policies accurately and effectively, pay more attention to countercyclical adjustments, make better use of the total and structural functions of monetary policy instruments, and focus on expanding domestic demand, boosting confidence, and promoting a virtuous economic cycle.
The meeting believed that efforts should be stepped up to implement the monetary policies already put in place. Maintain reasonable and abundant liquidity, guide reasonable credit growth and balanced investment, and keep the scale of social financing and money supply in line with the expected goals of economic growth and price levels. Promote a moderate recovery in prices and keep prices at a reasonable level. Improve the mechanism for the formation and transmission of market-based interest rates, enrich the monetary policy toolbox, give full play to the central bank's policy interest rate guidance role, release the effectiveness of loan market quoted interest rate reforms and market-based adjustment mechanisms for deposit interest rates, and promote a steady decline in corporate financing and residents' credit costs. At the same time, in the process of economic recovery, we should also pay attention to changes in long-term yields. Unblock the transmission mechanism of monetary policy and improve the efficiency of the use of capital. Deepen exchange rate market-based reforms, guide enterprises and financial institutions to adhere to the “risk neutrality” concept, adopt comprehensive measures, correct deviations and stabilize expectations, resolutely correct procyclical behavior, resolutely prevent the risk of exchange rate overregulation, prevent the formation of unilateral consistent expectations and self-strengthening, and maintain the basic stability of the RMB exchange rate at a reasonable equilibrium level.
The conference pointed out that it is necessary to deepen financial supply-side structural reforms and establish an institutional mechanism for effective financial support to the real economy. Guide large banks to play the main role of financial services in the real economy, push small and medium-sized banks to focus on their main business, support banks to supplement capital, and jointly maintain the stable development of the financial market. Do a good job in the five major articles on technology finance, green finance, inclusive finance, pension finance, and digital finance, continue to increase support for major strategies, key areas, and weak links, and promote the accelerated development of new quality productivity. Appropriately increase rediscount amounts for small reloans to support agriculture, make full use of carbon emission reduction support tools, and set up reloans for scientific and technological innovation and technological transformation. Increase financial support for large-scale equipment upgrades and consumer goods trade-in. Comprehensive policies support coordinated regional development. Implement action plans to strengthen financing support for technology-based enterprises, guide financial institutions to increase medium- and long-term loans to manufacturing industries with market demand, and support the acceleration of the construction of a modern industrial system. Adhere to “two unwavering” and continue to provide good financial services to support the growth of private economic development. The city's policies accurately implement differentiated housing credit policies to better support rigid and improved housing needs, meet the reasonable financing needs of real estate enterprises with different forms of ownership without discrimination, and promote the stable and healthy development of the real estate market. Strengthen financial support for the “market+guarantee” housing supply system and focus on constructing a new model of real estate development. Implement financial policies and measures to promote the healthy development of the platform economy. Effectively promote a high level of two-way financial openness, and improve economic and financial management capabilities and risk prevention and control capabilities under open conditions.
The conference emphasized the need to be guided by Xi Jinping's ideology of socialism with Chinese characteristics in the new era, fully implement the spirit of the 20th National Congress of the Party, the Central Economic Work Conference, the Central Financial Work Conference and the National “Two Sessions”, follow the decisions and arrangements of the Party Central Committee and the State Council, adhere to the general tone of steady progress, firmly grasp the top tasks of high-quality development, solidly push forward Chinese-style modernization, fully implement the new development concept, and accelerate the construction of a new development pattern. Organically combine the implementation of strategies to expand domestic demand with deepening supply-side structural reforms, further strengthen interdepartmental policy coordination, strengthen policy coordination, give full play to the effectiveness of monetary and credit policies, and balance internal and external equilibrium. Effectively enhance economic vitality, prevent and mitigate risks, improve social expectations, consolidate and enhance the positive trend of economic recovery, and continue to promote effective qualitative improvement and reasonable quantitative growth of the economy.
The meeting was presided over by Pan Gongsheng, Governor of the People's Bank of China and Chairman of the Monetary Policy Committee. Monetary Policy Committee members Li Chunlin, Liao Min, Zhang Qingsong, Xuan Changneng, Li Yunze, Kang Yi, Zhu Hexin, Tian Guoli, Wang Yiming, Huang Yiping, and Huang Haizhou attended the meeting. Xu Shouben and Wu Qing took leave of absence due to official duties. Comrades in charge of the Tianjin Branch, Jiangsu Branch, Jiangxi Branch, and Xinjiang Uygur Autonomous Region of the People's Bank of China attended the meeting.
editor/tolk