news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

according to news on the website of the people's bank of china on september 29, the monetary policy committee of the people's bank of china for the third quarter of 2024 (the 106th overall) regular meeting was held in beijing on september 25. the meeting pointed out that it is necessary to increase the intensity of monetary policy control and improve the accuracy of monetary policy control. maintain reasonable and sufficient liquidity, guide the reasonable growth and balanced release of credit, keep the scale of social financing and money supply consistent with the expected goals of economic growth and price levels, and promote prices to remain at a reasonable level.

image source: people's bank of china

quick overview

increase monetary policy controls

improve the accuracy of monetary policy control

strengthen the guiding role of central bank policy interest rates

prevent the risk of exchange rate overshooting

reduce existing mortgage interest rates

implement financial policies and measures to promote the healthy development of the platform economy

promote the implementation of new instruments such as swap facilities for securities, funds, and insurance companies, and stock repurchases, holdings, and refinances to maintain the stability of the capital market.

increase monetary policy controls

the meeting pointed out that the uncertainty brought about by changes in the current external environment has increased, the momentum of world economic growth is not strong, inflationary pressure has eased, the economic performance of major economies has diverged, and monetary policy has entered an interest rate cutting cycle. my country's economic performance is generally stable and high-quality development is solidly advanced. however, it still faces challenges such as insufficient effective demand and weak social expectations. it is necessary to implement prudent monetary policy accurately and effectively, pay more attention to counter-cyclical adjustments, better utilize the dual functions of monetary policy tools in terms of total volume and structure, strive to expand domestic demand, boost confidence, and promote the continued recovery of the economy.

the meeting believed that it is necessary to increase the intensity of monetary policy control and improve the accuracy of monetary policy control. maintain reasonable and sufficient liquidity, guide the reasonable growth and balanced release of credit, keep the scale of social financing and money supply consistent with the expected goals of economic growth and price levels, and promote prices to remain at a reasonable level. improve the formation and transmission mechanism of market-based interest rates, strengthen the guiding role of the central bank's policy interest rates, give full play to the role of the self-discipline mechanism for market interest rate pricing and the effectiveness of the market-based adjustment mechanism for deposit interest rates, and promote the stabilization and decline of corporate financing and residents' credit costs. we will enrich the monetary policy toolbox, conduct government bond sales, and pay attention to changes in long-term yields. smooth the monetary policy transmission mechanism and improve the efficiency of fund use. strengthen the guidance of expectations, enhance exchange rate flexibility, maintain the basic stability of the rmb exchange rate at a reasonable and balanced level, prevent the formation of unilateral consistent expectations and self-reinforcement, and guard against the risk of exchange rate overshooting.

in terms of monetary policy, pan gongsheng, governor of the people's bank of china, recently stated that in order to further support the stable growth of the economy, the people's bank of china will firmly adhere to a supportive monetary policy stance, increase the intensity of monetary policy regulation, and improve the accuracy of monetary policy regulation, so as to stable economic growth and high-quality development create a good monetary and financial environment.

maintain capital market stability

the meeting pointed out that it is necessary to deepen the structural reform of the financial supply side and build a system and mechanism for finance to effectively support the real economy. guide large banks to play the main role of financial services in the real economy, promote small and medium-sized banks to focus on their main responsibilities and main businesses, support banks in replenishing capital, and jointly maintain the stable development of the financial market. we will do a good job in the five major articles of science and technology finance, green finance, inclusive finance, pension finance and digital finance, continue to increase support for major strategies, key areas and weak links, promote the accelerated development of new productive forces, and more targeted meet reasonable consumer financing needs.

the meeting pointed out that it is necessary to effectively implement various existing structural monetary policy tools, promote the implementation of new instruments such as securities, funds, insurance company swap facilities and stock repurchases, holdings, and re-lending, and maintain the stability of the capital market; promote technological innovation and the process of technological transformation and refinancing will be strengthened, and financial support for large-scale equipment updates and trade-in of consumer goods will be increased. accelerate the formation of a diversified relay financial service system covering the entire life cycle of technology-based enterprises to help build a technologically powerful country and achieve high-level technological self-reliance. adhere to and implement the "two unwavering principles", continue to provide financial services that support the development and growth of the private economy, and further clear up the financing congestion and stuck points for small, medium and micro enterprises.

promote the stable and healthy development of the real estate market

the meeting pointed out that we should fully understand the new changes in the supply and demand relationship in the real estate market, comply with the new expectations of the people for high-quality housing, strive to promote the implementation of the financial policies and measures that have been introduced, support the revitalization of idle land, reduce the interest rates of existing mortgages, and promote the stable and healthy development of the real estate market. . increase financial support for the "market + guarantee" housing supply system and promote the acceleration of the construction of a new model of real estate development. implement financial policies and measures to promote the healthy development of the platform economy. effectively promote high-level two-way opening up of finance and improve economic and financial management capabilities and risk prevention and control capabilities under opening conditions.

analysts at the china index research institute believe that the central bank has made it clear that it will study financial support policies for market-oriented acquisitions of land by real estate companies and will provide re-loan support when necessary, which means that more supporting funds will enter the market in the future. for high-quality housing companies, they can actively seek loan support, search for high-quality land from housing companies with financial difficulties to acquire, expand land reserves, and revitalize existing land. the sale of existing land by real estate companies with financial difficulties will help relieve their own financial pressure and further stabilize market expectations.

"since the beginning of this year, the interest rates of new mortgage loans have continued to fall, and the interest rate difference between existing and incremental mortgage loans has continued to expand." yang kewei, deputy general manager of cric research center, said that due to this, the phenomenon of residents repaying their loans early has become more prominent. lowering existing mortgage interest rates will not only reduce residents' mortgage loan interest payment burden and release consumption potential, but also help stabilize financial order.

in addition, the meeting emphasized the need to organically combine the implementation of the strategy of expanding domestic demand with the deepening of supply-side structural reforms, strengthen macro-policy coordination, make every effort to accelerate the implementation of financial incremental policy measures, effectively improve social expectations, enhance economic vitality, and consolidate and strengthen the economy. the trend is improving.