Xinhua Commentary Monetary Policy &Nbsp; Central Or Big Move

This year, faced with extremely complex domestic and foreign economies

In response to the international financial crisis, the people's Bank of China resolutely implemented moderately loose monetary policy since the fourth quarter of 2008, boosting China's economy to take the lead in stabilizing and recovering in the world's major economies.

At the same time, however, the excessive money put in over the past two years has also increased the pressure of price rise to some extent. Since last year, China's consumer price index (CPI) has continued.

Economists believe that inflation is, after all, a monetary phenomenon. By controlling the growth of money, it can restrain the excessive price rise to a certain extent.

To stabilize prices as the primary objective, the central bank in the first half of the year has launched six monetary policy "combination punches", which raise the deposit reserve ratio of financial institutions, raise the benchmark interest rate for three times, and repeatedly implement the net return operation of funds in the open market.

In addition, in order to hedge the increasing foreign exchange, the central bank made a dynamic adjustment to the deposit reserve system in September, putting the margin deposit of banks into the reserve reserve scope, and the flexibility and pertinence of the policy were further enhanced.

Under the influence of a series of policies, the credit growth rate of our country has dropped significantly. The monthly loan amount of bank loans has gradually closed to the regulatory target. The growth rate of the broad money supply (M2) has gradually dropped from 30% over two years ago to the target of monetary growth scheduled for the beginning of the year.

Under the policy role, the sustained high price level finally rose in the three quarter.

Data show that CPI rose 6.2% in August, or 0.3 percentage points lower than in July.

Economists predict that the fourth quarter of CPI will continue to slightly lower than last year's growth rate.

Overall, China's economic situation is generally improving. Economic growth is changing from policy stimulus to self growth, and continues to move towards the direction of macro regulation and control.

But at the same time, we should also be soberly aware that new situations, new problems and new contradictions are constantly emerging in the international environment and domestic economic operation, and the imbalance, uncoordinated and unsustainable contradictions in economic development are still outstanding.

Affected by the spreading and deepening of the debt crisis in Europe and the United States, the recovery process of the world economy will be more tortuous. The unstable and uncertain factors of these external environments will undoubtedly increase the operating pressure of China's export enterprises.

Due to the tightening of monetary and credit policies, the financing cost of some small and medium-sized enterprises has obviously increased, and some enterprises in coastal areas have experienced difficulties in financing, financing and capital chain tension, which, to a certain extent, have affected the growth of endogenous driving force of economic development.

At present, monetary regulation is entering the crossroads of "dilemma".

This dilemma is reflected in the fact that on the one hand, the overall level of prices is still high, the foundation for stabilizing prices is not strong enough, and monetary regulation and control can not be suddenly relaxed. On the other hand, with the deterioration of external environment, China's economic growth will be faced with the worry of growth decline, and the policy should not be too tight.

At present, both the world economy and the domestic economy will enter a new historical stage. In this important strategic opportunity period, as long as the response is right, the Chinese economy will surely achieve a longer period, higher level and better quality development.

In the next step, China's macroeconomic regulation and control will grasp the direction, intensity and rhythm of economic policies, deal with the relationship between maintaining the steady and rapid economic development, adjusting the economic structure and managing the inflation expectations, maintaining the general stability of the general price level, and preventing the great fluctuation of the economy in the three years.

In the future, China's monetary policy will further enhance the pertinence, flexibility and foresight of regulation.

By combining the interest rate, exchange rate, open market operation, deposit reserve ratio and macro Prudential Management, we should maintain a reasonable scale and rhythm of social financing.

In view of the financing difficulties of small and medium-sized enterprises, the policy will further optimize the credit structure, and guide financial institutions to continue to increase support for qualified SMEs, especially small and micro enterprises.