PBC: Make timely and appropriate counter-cyclical adjustments

Zou Lan, director of the Monetary Policy Department of the People’s Bank of China, spoke on lowering required reserve ratios (RRR) cuts and interest rate cuts at a press conference on August 4. On the one hand, RRR cuts, open market operations, medium-term lending facilities, and various structural monetary policy tools all have the aggregate effect of supplying liquidity. They need to be coordinated and adopted flexibly, and the Central Bank needs to comprehensively evaluate the deposit reserve ratio policy to jointly maintain reasonable and sufficient liquidity in the banking system. On the other hand, it is necessary to scientifically and reasonably grasp the interest rate level. Not We should not only timely and appropriate counter-cyclical adjustments be made in accordance with the economic and financial situation and the needs of macro-control, but also take into account the growth-risk balance and internal-external balance in order to prevent capital arbitrage and idling, improve policy efficiency, and enhance the stability of bank operations. In recent years, the reduction of corporate loan interest rates has achieved remarkable results. In the future, it will continue to play a significant role in the reform of the loan market quotation interest, guiding banks to adjust the stock personal housing loan interest rates in an orderly manner in accordance with the law. Meanwhile, it is necessary to continue to utilize the market-based adjustment mechanism of deposit interest rates to maintain the order of market competition and support banks in rationally controlling debt costs so as to further enhance the sustainable support of finance to the real economy.