Make Good Use of Policy Space to Find the Right Direction for Power (Observed by Commentators) Monetary Policy | Economy | Space Finding

On July 24th, the Political Bureau of the Central Committee of the Communist Party of China held a meeting to analyze and study the current economic situation and deploy economic work for the second half of the year. Starting from today, this version will launch a series of comments to comprehensively understand and accurately grasp the decisions and deployments of the Party Central Committee with readers, in order to unite and do a good job in economic work in the second half of the year.

——Editor

The midstream hits the water, and those who strive to paddle forward. The recent meeting of the Political Bureau of the Communist Party of China Central Committee pointed out that since the beginning of this year, the national economy has continued to recover, overall rebounded and improved, and high-quality development has been solidly promoted. The meeting emphasized the need to continuously promote the continuous improvement of economic operation, the continuous enhancement of endogenous driving force, the continuous improvement of social expectations, and the continuous resolution of risks and hidden dangers in order to do a good job in economic work in the second half of the year. We must implement precise and effective macroeconomic regulation, actively expand domestic demand, vigorously promote the construction of a modern industrial system, and increase efforts to ensure people's livelihoods... We must unify our thoughts and actions with the analysis, judgment, and decision-making deployment of the Party Central Committee on the economic situation, seize the opportunity, and strive to achieve new results in promoting high-quality development with new trends and new initiatives.

Things are not known to be difficult unless they have gone through, but they are as easy but difficult as they are. To understand the performance report of the first half of the year with a positive economic recovery and a good start, it is necessary to understand the practical logic of macro policy coordination and strength. Active fiscal policies have been strengthened to improve efficiency, with 2172.1 billion yuan of special bonds issued in various regions, supporting the construction and implementation of a large number of projects that benefit people's livelihoods, address weaknesses, and enhance strengths and weaknesses; A prudent monetary policy is precise and effective, with a weighted average interest rate of 3.96% for newly issued corporate loans, promoting a steady decrease in financing costs for the real economy; We have made every effort to expand employment, achieving 6.78 million new urban jobs in the first half of the year and 57% of the annual target. The effects of various policies have continued to show, and high-quality development has been solidly promoted. Despite enduring wind and rain, our resilience remains strong, our potential is enormous, and our vitality remains strong. This fully proves that the direction of macroeconomic regulation is correct and the prospects for economic development are bright. With unwavering confidence, seeking progress while maintaining stability, making good use of policy space, and finding the right direction for development, we can definitely achieve the established goals.

For an economy as large as ours, maintaining stable economic operation is crucial. It should be recognized that after a smooth transition in epidemic prevention and control, economic recovery is a process of wave like development and tortuous progress. In the first half of the year, we highlighted the work of stabilizing growth, employment, and prices. The economic growth was better than expected, market demand gradually recovered, and economic development showed a positive trend of recovery. The economic operation achieved a good start. It should also be noted that the current improvement in China's economic performance is mainly restorative, with weak endogenous driving forces and insufficient demand. Economic transformation and upgrading face new obstacles, and promoting high-quality development still requires overcoming many difficulties and challenges. We must persist in grasping the long-term trend with a comprehensive, dialectical, and long-term perspective, adhere to bottom line thinking, and do a good job in policy "combination boxing", focusing on expanding domestic demand, boosting confidence, and preventing risks. We will make greater efforts in transforming methods, adjusting structures, and increasing momentum, combining policy effectiveness with stimulating the vitality of business entities, and forming a strong synergy to promote high-quality development.

We must seize the precious mid year time window, focus on the primary task of high-quality development and the strategic task of building a new development pattern, accurately and effectively implement macroeconomic regulation, strengthen countercyclical regulation and policy reserves. On the one hand, make good use of policy space, continue to implement proactive fiscal and prudent monetary policies, maintain the basic stability of the RMB exchange rate at a reasonable and balanced level, activate the capital market, and boost investor confidence; On the other hand, we need to find the right direction for our efforts, continue, optimize, improve, and implement tax and fee reduction policies, leverage the role of aggregate and structural monetary policy tools, and vigorously support technological innovation, the development of the real economy, and small and medium-sized enterprises. In the midst of the test, strengthen your muscles and bones, and after the wind and rain, see a rainbow. By implementing various regulatory measures with the spirit of nailing nails, China's economic ship will surely ride the wind and break the waves, and move forward without fail.

Strive for the most difficult and pursue the highest and farthest goals. Adhere to the combination of goal orientation and problem orientation, grasp strategic initiative in adapting to local conditions, adapting to the situation, and taking advantage of the situation, take responsibility, overcome difficulties, further stimulate the development vitality of business entities through comprehensive deepening of reform and opening up, and further boost their confidence in development through precise regulation. We have the ability and conditions to promote sustained economic recovery and high-quality development to a new level.