Although marginal improvement has occurred in the economy, leading to marginal changes in monetary policy of the central bank, and liquidity is no longer excessively loose, the economy is still facing a lot of internal and external pressures. Therefore, monetary policy is only marginal change, and there is no way to turn or tighten obviously. Jiang Hai Securities chief economist Qu Qing thinks.
From the perspective of the central banks liquidity regulation tone, the central banks monetary policy tools are obviously more cautious in recent years. They do not further use the operation of reducing the reserve rate and interest rate, but mainly through the open market operation and medium-term lending facility (MLF).
The operation of monetary policy in the second half of the year is expected to become more normal, mainly through the way of moderate structural adjustment, targeted support for the manufacturing industry, small and medium-sized enterprises and other weak links of the real economy. Wen bin, chief researcher of Minsheng Bank, said.
Wen bin further explained that in the first half of the year, the effect of broad credit was more significant, which helped accelerate the recovery of the economy. In the second quarter, Chinas economic growth rate turned positive to 3.2%, and the main economic indicators gradually improved. However, in the next stage, there are still many difficulties and challenges in the economic recovery and development. It is still the most important task to keep the majority of small and medium-sized enterprises and other market players, ensure employment, and protect peoples livelihood.
It is clearly expected that in the process of returning to normal monetary policy, the central bank will restart the open market operation and stabilize the capital, indicating that monetary policy adjustment is in place. The price of LPR remained unchanged for three consecutive months, which also indicated that monetary policy remained cautious and did not rush to guide cost reduction by reducing interest rates and reserve requirements. It is expected that the follow-up monetary policy will remain stable in the short term and flexible in the long term. (Chang Peiqi)