According to the central bank data, at the end of July, the balance of broad money (M2) was 191.94 trillion yuan, up 8.1% year-on-year, 0.4 percentage points lower than that at the end of last month and the same period last year; the balance of narrow money (M1) was 55.3 trillion yuan, up 3.1% year-on-year; the growth rate was 1.3 and 2 percentage points lower than that at the end of last month and the same period last year respectively; and the balance of medium currency (M0) in circulation was 77,700 yuan. It increased by 4.5% over the same period last year. The net cash put in that month was 10.8 billion yuan.
At the end of July, the balance of RMB loans was 147.02 trillion yuan, up 12.6% year-on-year. The growth rate was 0.4 percentage points lower than that at the end of last month and 0.6 percentage points lower than that at the same time last year. Renminbi loans increased by 1.06 trillion yuan in July, an increase of 397.5 billion yuan from the same period last year. In terms of sub-sectors, household sector loans increased by 511.2 billion yuan, of which short-term loans increased by 69.5 billion yuan, medium-term and long-term loans increased by 441.7 billion yuan; non-financial enterprises and organs increased by 297.4 billion yuan, of which short-term loans decreased by 219.5 billion yuan, medium-term and long-term loans increased by 367.8 billion yuan, bill financing increased by 128.4 billion yuan; non-banking funds Loans from financial institutions increased by 232.8 billion yuan.
In terms of deposits, RMB deposits increased by 642 billion yuan in July, an increase of 386.7 billion yuan over the same period last year. Among them, household deposits decreased by 103.2 billion yuan, deposits of non-financial enterprises decreased by 139 trillion yuan, Financial deposits increased by 809.1 billion yuan and deposits of non-banking financial institutions increased by 134 trillion yuan.
The central banks second quarter monetary policy implementation report released on Friday pointed out that in the face of the possibility that the global economy will maintain medium-and-low-speed growth in the medium and long term, in policy response, we should adhere to the principle of self-reliance, give due consideration to international factors, grasp a comprehensive balance in multi-objectives, maintain a firm force and make good plans for medium-and long-distance running. Steady monetary policy should be tightened and moderately adjusted in a timely and moderate manner, and adjusted in a timely manner according to economic growth and price changes.
For the next stage of work, the report said that we should focus on the supply-side structural reform to stabilize demand and prevent and mitigate risks in promoting high-quality development. Steady monetary policy should be tight and moderate, keep liquidity reasonable and abundant, timely and moderately implement counter-cyclical adjustment, and guide the growth rate of broad money M2 and social financing scale to match the growth rate of nominal GDP.
The report emphasizes the need to maintain stability and effectively deal with the impact of uncertainties at home and abroad. Steady monetary policy should be kept tight and moderate, seizing the bank as the main monetary creator and the transmission center of monetary policy is the key to alleviate the liquidity, interest rate and capital constraints faced by bank credit supply. Flexible use of deposit reserve ratio, medium-term lending facilities, standing lending facilities, open market operations and other monetary policy tools to maintain a reasonable and abundant liquidity. Guiding the overall downward trend of market interest rates, dredging the transmission of money market interest rates to credit interest rates, and easing interest rate constraints. To supplement the first-level capital of commercial banks with sustainable debt as a breakthrough, the central bank should create and carry out bill swap operations to support it.