China Net Finance, March 6 Today, the second session of the 14th National People's Congress held a press conference on economic themes. Pan Gongsheng, governor of the People's Bank of China, said at the meeting that China's economy has rebounded well and high-quality development has been steadily promoted, but the situation at home and abroad is still complex and changeable, and it is necessary to give full play to policy synergy and increase the policy intensity of macroeconomic regulation and control. China's monetary policy toolbox is still abundant, and there is still plenty of room for monetary policy. In the regulation and control of monetary policy, more attention will be paid to balancing the relationship between short-term and long-term, stable growth and risk prevention, and internal equilibrium and external equilibrium, strengthen counter-cyclical and cross-cyclical adjustment, and strive to boost confidence, stabilize expectations, and stabilize prices, so as to create a good monetary and financial environment for economic operation and development.
First, it is necessary to maintain a reasonable growth in the total volume. Pan Gongsheng said that last year, the People's Bank of China lowered the reserve requirement ratio twice, each time to 025 percentage points; On February 5 this year, the reserve requirement ratio was lowered by 05 percentage points, 05 percentage points is a one-time release of 1 trillion yuan of long-term liquidity. At present, the reserve requirement ratio of the entire Chinese banking industry is 7% on average, and there is still room for RRR cuts in the future. We will comprehensively use a variety of monetary policy tools, increase counter-cyclical adjustment, maintain reasonable and abundant liquidity, support the steady growth and balanced allocation of social financing scale and total monetary credit, and achieve the matching of the scale of social financing and the amount of broad money with the expected target of economic growth and level.
Second, we will continue to promote the steady decline in the cost of comprehensive social financing. In 2023, interest rates will be cut twice, and the interest rate on existing mortgage loans will be reduced, leading major banks to lower deposit interest rates, and in February this year, the interest rate of the loan market with a maturity of more than 5 years will be reduced by 025 percentage points; It will strongly promote the reduction of social financing costs and support investment and consumption. We will take maintaining stability and promoting a moderate rebound as an important consideration of monetary policy, take into account the health of the balance sheet of the banking industry, and continue to promote the steady and moderate decline of comprehensive social financing costs.
Third, we should pay more attention to improving efficiency in terms of structure. Further enhance the effectiveness of monetary policy in promoting economic restructuring, transformation and upgrading, and the transformation of old and new kinetic energy. Pan Gongsheng said that it will set up re-lending for scientific and technological innovation and technological transformation, continue to implement re-lending to support carbon emission reduction, give full play to the incentive and driving role of structural monetary policy tools, guide financial institutions to scientifically assess risks, restrict the financing supply of overcapacity industries, and meet reasonable consumer financing needs in a more targeted manner. Revitalize the stock of financial resources and strive to improve the efficiency of the use of funds.
Fourth, the exchange rate will remain basically stable at a reasonable and equilibrium level. Pan Gongsheng said that in the past period, we have adhered to the principle of market supply and demand, adopted a series of macro-prudential management measures, and maintained the basic stability of the RMB exchange rate under the complicated situation. Monetary policy in major economies is expected to shift this year, and the momentum of the dollar index has weakened. Over the past few days, the monetary policy cycle differential at home and abroad has tended to converge. China's economic fundamentals continue to rebound, the participants in the foreign exchange market are becoming more mature, and more and more business entities use exchange rate hedging tools and RMB for cross-border settlement. In February, 30% of all cross-border settlements of goods** in China were settled in RMB. The combined effect of these factors is objectively conducive to enhancing the operational space of China's monetary policy, which is conducive to the balance of cross-border capital flows and the maintenance of the basic stability of the RMB exchange rate.
Pan Gongsheng stressed that the People's Bank of China will implement the best decision-making and deployment in a professional and pragmatic spirit, and the prudent monetary policy should be flexible, moderate, precise and effective, adhere to the fundamental purpose of serving the real economy, increase macroeconomic regulation and control, strengthen the dual adjustment of aggregate and structure, consolidate and enhance the positive trend of economic recovery, and continue to promote high-quality development.