New Cautious Currency Framework Takes Shape in China

iFeng: 新华社定调:中国新的货币政策框架体系正在成形
Future monetary policy will change according to the situation "more cautious"

The orientation of monetary policy, the opening year has been very clear. But in 2017, whether economic or financial, the most prominent difficulty is full of uncertainty. How will monetary policy respond to this uncertainty?

Or look at the authoritative argument. Zhang Xiaohui, assistant governor of the central bank, described the "more neutral" monetary policy in 2017, while also using the term "more prudent". She pointed out that the integrated use of price and volume tools and macro-prudential policy to strengthen the pre-tune fine-tuning, adjust the money gate.

In the intricate domestic and foreign environment, monetary policy in 2017 clearly needs to better balance the relationship between steady growth, structural adjustment, bubble suppression and risk prevention.

At present, the world's political and economic development is at a historic juncture, the Federal Reserve announced that it will continue to raise interest rates but the actual operation of caution; stabilize the domestic economy to be further consolidated, new and old kinetic energy transformation remains to be strengthened, the renminbi exchange rate is still under pressure. Monetary policy, while creating an appropriate environment for the supply side structural reforms, must take into account various factors, subject to various constraints, require superb operational skills and control art.

"The central bank's monetary policy operations, although the direction has been very clear, but will take an orderly and gradual approach.At the same time will consider the financial markets and the real economy and other aspects, to maintain overall sound situation.If the future economic situation There will be a big change, monetary policy will also be adjusted. "Zeng Gang said.

Lianping that the future of monetary policy will still be very cautious, is likely to be "step by step look at": one depends on the domestic financial market response, the other depends on the real economy trend, in addition to the Federal Reserve interest rate increase process And the RMB exchange rate movements, will not rashly take too big move.

Concerned about short-term policy changes at the same time, can not ignore the long-term system. It is gratifying to find that a new monetary policy framework is taking shape as China's monetary policy continues to fine-tune in response to changing circumstances.

Zeng Gang pointed out that in the past China's monetary policy implementation is based on quantitative regulation, and now is the transition to price regulation, more and more attention to play the role of market interest rates. In the future, with the deepening of financial market reform, the benchmark interest rate and yield curve become more and more complete, and eventually will form a good mechanism to guide financial institutions and entities to invest rationally and prevent risks with interest rate changes

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