Financial support entities need to be strong enough to maintain a stable pace
The direction of macroeconomic policies is crucial for stabilizing expectations. Since August, financial management departments have made frequent statements, and a series of policy measures have been intensively introduced to promote countercyclical adjustment and deepening policy reserves.
Stability remains a key requirement for implementing good monetary policy. Stable currency is an important foundation for stabilizing the economy, employment, and prices. Macroeconomics is an uninterrupted continuous process, and monetary policy is mainly aimed at smoothing out the overall demand fluctuations that occur during economic operation, avoiding the damage of economic fluctuations to production factors and social wealth. In recent years, China has always adhered to the implementation of a prudent monetary policy, prioritizing stability and maintaining normal monetary policy space. During economic downturns, there will be no flooding, and during economic rebounds, there will be no sharp turns. We will use the stability of monetary policy to address internal and external uncertainties and guide the formation of reasonable market expectations.
At present, the economic recovery and development have reached a critical juncture of climbing and overcoming obstacles, and sufficient momentum is needed to achieve the goal of stable growth. In order to effectively stimulate market demand, promote the stable and moderate reduction of enterprise financing and resident credit costs, the loan market quotation interest rate has been lowered twice in the past three months, releasing positive policy signals and demonstrating the determination of the financial system to benefit the real economy, which will help promote the sustained recovery and improvement of the economy.
Faced with complex and severe domestic and international situations, it is necessary to have enough patience, maintain a good pace, and do one's own thing well. China is a super large economy, and monetary policy must be primarily focused on ourselves, adjusting in a timely manner according to the domestic macroeconomic and price situation, and independently grasping the pace of regulation. Since last year, major central banks around the world have continued to raise interest rates significantly. Considering the weak overall demand of China's economy, the People's Bank of China not only did not simply follow the interest rate hikes, but also guided open market operating interest rates down multiple times, driving the 1-year and 5-year LPR down by 35 basis points and 45 basis points respectively.
In addition, we need to continuously deepen the structural reform of the financial supply side, and enhance the stability of financial support for the real economy in terms of strength and pace. Structural monetary policy should focus on key areas, be reasonable and moderate, and have both progress and retreat. It should leverage the triple advantages of total quantity, structure, and price, coordinate the expansion of domestic demand and optimization of supply, promote the tilt of financial resources towards key areas and weak links such as small and micro enterprises, green development, and technological innovation, and increase the endogenous stability of the economy through structural optimization, ensuring long-term stable, healthy, and sustainable development of the economy.
At present, the momentum of high-quality development is constantly accumulating, and we still have sufficient policy space to cope with unexpected challenges and changes. Next, a prudent monetary policy should continue to be precise and effective, grasp the pace and intensity reasonably according to changes in the situation, stabilize the recovery momentum of the real economy, focus on expanding domestic demand, boosting confidence, and preventing risks, support the real economy to achieve effective improvement in quality and reasonable growth in quantity, and inject a continuous source of power into macroeconomic stability and high-quality development.
