On December 28, the official website of the People's Bank of China announced that the regular meeting of the Monetary Policy Committee of the People's Bank of China in the fourth quarter of 2023 (the 103rd in total) was held in Beijing on the 27th.
The meeting pointed out that a prudent monetary policy should be flexible, moderate, precise and effective. It is necessary to seek progress while maintaining stability, promote stability through progress, intensify macroeconomic policy regulation and control, and constantly consolidate the foundation for stability and improvement. We will accurately and effectively implement a prudent monetary policy, pay more attention to counter-cyclical and cross-cyclical adjustments, give better play to the dual functions of monetary policy tools, and strive to expand domestic demand, boost confidence, and promote a virtuous cycle of the economy.
The meeting believed that China's economy is rebounding, the momentum is increasing, and high-quality development is being solidly promoted, but it still faces challenges such as insufficient effective demand and weak social expectations. It is necessary to intensify the implementation of the monetary policy that has been introduced. Maintain reasonable and abundant liquidity, guide the reasonable growth and balanced allocation of credit, and keep the scale of social financing and the amount of money in line with the expected targets of economic growth and the highest level.
The meeting pointed out that it is necessary to deepen the structural reform of the financial supply side and build an institutional mechanism for finance to effectively support the real economy. We should do a good job in the "five major articles" of science and technology finance, green finance, inclusive finance, pension finance and digital finance, implement the existing structural monetary policy tools, and implement the re-lending and re-discounting quota.
It still faces challenges such as insufficient effective demand and weak social expectations.
The meeting analyzed the economic and financial situation at home and abroad. The meeting believed that since the beginning of this year, the macro policy has adhered to the principle of stability, seeking progress while maintaining stability, the prudent monetary policy is precise and powerful, strengthening counter-cyclical and cross-cyclical adjustment, and comprehensively using interest rates, reserves, re-lending and other tools to effectively serve the real economy, effectively prevent and control financial risks, and create a suitable monetary and financial environment for the economic rebound.
The interest rate reform of the loan market has achieved remarkable results, the market-oriented adjustment mechanism of deposit interest rates has been effectively played, the transmission efficiency of monetary policy has been enhanced, and the cost of social financing has decreased significantly.
The supply and demand of the foreign exchange market are basically balanced, the current account surplus is stable, the foreign exchange reserves are sufficient, the RMB exchange rate floats in both directions, and the expectation is stable, maintaining basic stability at a reasonable and balanced level, and playing the role of a macroeconomic stabilizer.
For the current economic and financial situation at home and abroad, the meeting pointed out that the current external environment is becoming more complex and severe, the international economic investment is slowing down, inflation is showing a trend of falling from a high level, and interest rates in developed countries remain high. China's economy has rebounded, the momentum has been strengthened, and high-quality development has been steadily promoted, but it still faces challenges such as insufficient effective demand and weak social expectations.
Intensify the implementation of the monetary policy that has been introduced.
The meeting held that it is necessary to intensify the implementation of the monetary policy that has been introduced. Different from the regular meeting in the third quarter, "the growth rate of monetary volume and social financing scale is basically matched with the nominal economic growth rate". The meeting believed that it is necessary to maintain reasonable and abundant liquidity, guide the reasonable growth and balanced distribution of credit, and keep the scale of social financing and the amount of money matching the expected goals of economic growth and the highest level.
The meeting believed that it is necessary to enhance the guiding role of investment and policy incentives, improve the multiplier effect, and effectively stimulate more private investment. Promote the recovery of low prices and keep prices at a reasonable level.
Improve the formation and transmission mechanism of market-oriented interest rates, give full play to the guiding role of the central bank's policy interest rate, release the effectiveness of the first-class interest rate reform in the loan market and the market-oriented adjustment mechanism of deposit interest rates, and promote the steady decline of corporate financing and household credit costs. Actively revitalize the financial resources that are inefficiently occupied and improve the efficiency of capital use.
Deepen the market-oriented reform of the exchange rate, guide enterprises and financial institutions to adhere to the concept of "risk neutrality", implement comprehensive policies, correct deviations, stabilize expectations, resolutely correct pro-cyclical behaviors, resolutely prevent the risk of exchange rate overshoot, prevent the formation of unilateral consensus expectations and self-reinforcement, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.
Do a good job in the "five big articles" and continue to support the new model of real estate development.
The meeting pointed out that it is necessary to deepen the structural reform of the financial supply side and build an institutional mechanism for finance to effectively support the real economy.
Different from the regular meeting of the third quarter, this meeting added support for the "five big articles". The meeting pointed out that it is necessary to do a good job in the "five major articles" of science and technology finance, green finance, inclusive finance, pension finance and digital finance, implement the existing structural monetary policy tools, implement the re-lending and re-discounting quota, continue to increase support for inclusive finance, green transformation, scientific and technological innovation, digital economy, infrastructure construction, etc., and implement comprehensive policies to support regional coordinated development.
In addition, the meeting pointed out that it is necessary to guide the service focus of large banks to sink, promote small and medium-sized banks to focus on their main responsibilities and main businesses, support banks to replenish capital, and jointly maintain the stable development of the financial market. Implement the action plan to increase support for the financing of science and technology enterprises, guide financial institutions to increase medium and long-term loans for the manufacturing industry, and support the acceleration of the construction of a modern industrial system. Adhere to the "two unswerving" and continue to do a good job in financial services to support the development and growth of the private economy. Improve the green financial system with the goal of promoting carbon peak and carbon neutrality. Optimize consumer financial services in the field of bulk consumer goods and social services, and continue to increase financial support for enterprises to stabilize and expand their jobs and key groups to start businesses and employment.
In terms of supporting the development of the real estate market, the meeting continued the support for the new model of real estate development in the third quarter. The meeting pointed out that the city's policies will accurately implement differentiated housing credit policies to better support the demand for rigid and improved housing, meet the reasonable financing needs of real estate enterprises with different ownership systems without discrimination, and promote the stable and healthy development of the real estate market. Increase financial support for the construction of affordable housing, the construction of public infrastructure for both ordinary and emergency purposes, and the transformation of urban villages, and promote the acceleration of the construction of a new model of real estate development.
The meeting also pointed out that the implementation of financial policy measures to promote the healthy development of the platform economy. Earnestly promote high-level two-way financial opening-up, and improve economic and financial management capabilities and risk prevention and control capabilities under the conditions of opening-up.
*:*Times.