Just as investors are expecting China’s interest rate cuts to rise, the People’s Bank of China Governor Yi Gang cooled the market on Tuesday
He made it clear that the mainland will not be eager to carry out large-scale interest rate cuts and quantitative easing measures as in other countries.
Yi Gang said that the mainland’s monetary policy insists on “taking me as the mainstay
After the European Central Bank restarted the measure of volume and the US Federal Reserve cut interest rates, the mainland’s monetary policy has drawn attention. Many analysts believe that the PBOC may cut interest rates. Bloomberg quoted Fan Limin, co-director of HSBC’s Asian Economic Research, predicting that interest rates may still need to be lowered in the Mainland in the next few months to alleviate the impact of the slowdown in economic growth.
Strengthening countercyclical adjustment to help enterprises
However, Yi Gang said that the mainland’s monetary policy is “mainly based on me" and mainly considers the economic and price trends in the Mainland. At present, the mainland economy is still in a reasonable range, and prices are also at a moderate level. After comprehensively analyzing the situation between China and foreign countries, the mainland’s monetary policy should remain fixed.
The three major financial ministries in the Mainland have enrolled the economy
Even if the global economy includes China, there is downward pressure, but the macroeconomic policy of the mainland has a large room for response. Taking monetary policy as an example, the current interest rate is moderate, leaving sufficient room for policy adjustment. The PBOC will also strengthen counter-cyclical adjustments, such as reducing corporate financing costs through reforms.
The NDRC’s four aspects of hedging risks
In order to hedge the risk of economic slowdown, Ning Jizhen, deputy director of the National Development and Reform Commission, threatened to form a strong domestic market. It will take active and effective measures from four aspects, including issuing some new quotas for special debts in advance next year. It is used for projects such as infrastructure; it actively promotes the upgrading and upgrading of consumer goods such as home appliances. In other words, expanding domestic demand and consumption is the key to policy.
In terms of revoking restrictions on automobile consumption, cities such as Guangzhou and Shenzhen have relaxed or cancelled restrictions on purchases. Cities such as Xi’an, Kunming and Guiyang are also considering ways to follow suit, and other eligible areas will follow. At present, consumption has become a major driving force for economic growth in the Mainland. The National Development and Reform Commission has indicated that it intends to adopt more measures to promote household consumption, guide residents to rational consumption, and form new consumption hotspots.
Ministry of Finance: big pressure on balance of payments
This year, the mainland has made four major phases of tax reduction and reduction. Liu Kun, Minister of Finance, said that the implementation was basically in line with expectations. The scale of tax cuts was even larger than originally expected. The first seven months of the new tax cuts and reductions were 1.34 trillion yuan. Among them, the manufacturing industry and the private economy have clearly benefited. As for the scale of tax reduction and fee reduction, it will be adjusted according to the evaluation results after the implementation of the policy.
However, Liu admitted that under the burden of reducing the enterprise and maintaining the intensity of fiscal expenditure, the pressure on fiscal balance is indeed greater. According to the monitoring data, the central revenue budget target for this year has increased by 5.1%, currently 3.5%. As there are still incomes in the remaining months of this year, it is expected to reach the target throughout the year.