After lowering the reserve requirement expectations, there are concerns that monetary policy will become tighter. Liu guoqiang, deputy governor of the people's bank of China, made it clear at the state council's regular policy briefing on Thursday that the current monetary policy orientation is prudent, and the operation method is discretionary, pre-adjustment and fine-tuning, and the operation target is appropriate tightness. "So the central bank has no intention of tightening monetary policy, nor of easing monetary policy. We do not want to see a shortage of liquidity in the market, nor do we want to see a flood of liquidity in the market. He said.

Mr Liu said the meeting of the political bureau of the communist party of China central committee had demanded that monetary policy be adjusted and fine-tuned in a timely manner in light of economic growth and changes in the price situation, and did not propose changing the orientation of monetary policy. "If the central bank carries out reverse repo or medium-term lending facility operation on a certain day, it does not mean that the monetary policy changes to a loose direction, but just to adjust short-term liquidity, because affected by various factors, short-term liquidity will fluctuate every day, so it needs to be adjusted in the short term; Conversely, if the central bank does not do reverse repo operations for several days, it does not mean that monetary policy should be tightened, because not doing so means that it is already reasonably abundant and there is no need to do so.

He said monetary policy should be judged by the four words "moderately tight". Judging the "degree of tightness" can directly look at the market's liquidity indicators. "One of the simplest indicators is the interbank repo rate, like DR007. Interest rate is the price of capital, which can reflect the supply and demand of capital. If you look at the price change, you can see whether the bottom is loose or tight. "" our policy orientation has not changed and we will maintain reasonable and ample liquidity.

Liu also said that the monetary policy should maintain reasonable and sufficient liquidity. On this basis, some structural adjustments will be made to support private enterprises and small and micro businesses. Correspondingly, some sectors may have to give up some resources to private enterprises and small and micro enterprises, but this will not lead to an increase in the overall leverage ratio. "Even for small and micro enterprises and private enterprises, the main policy orientation is to increase support, but in the long run, we think we should also take a comprehensive consideration, grasp the degree, both to increase support, but also consider the risks. He said.

In response to the market-oriented reform of interest rates, liu guoqiang also said that China will continue to push forward the reform, with the focus on the realization of the "two-track integration" of market interest rates and benchmark lending rates. 'the process will be positive and steady,' he said. 'there will be no rush or stagnation.

Source: economic information daily