Meng Xuanhe
The Central Economic Work Conference held at the end of last year has set the tone for this year’s monetary policy, that is, “a prudent monetary policy must be precise and powerful. Liquidity must be maintained at a reasonable and sufficient level, and the growth rate of broad money supply and social financing scale shall be kept at the same rate as nominal economic growth.” Speed Basic Match”.
Under this premise, the monetary policy for this year is basically determined. It can be predicted that there is still room for the base interest rate LPR to be lowered, and the money supply and financing scale will grow faster than last year. This year is the first year after the epidemic control was lifted, and economic development has become the top priority, and the growth rate is much faster than last year.
When global inflation is still high, I am also a little worried whether such easing will boost domestic inflation. The real estate sector is basically very relaxed now, and down payment and interest rate reductions have been continuously implemented. The fine-tuning operation through the open market is probably an important tool for the central bank this year, which can regulate market liquidity and expectations without changing the general tone.
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