Recently, Premier Li Keqiang of the State Council met with Georgieva, President of the International Monetary Fund, in a video meeting that he would use multiple currency tools to lower the RRR in due course. This statement conveyed my country’s determination as a large and responsible developing country to ensure the stable and healthy operation of the economy. Based on this, some market participants believe that factors such as the loosening of conditions for the third centralized land supply and the increase in loans for real estate companies have superimposed the signal of RRR cuts, indicating that macroeconomic policies will be loose.
This view is a simpler understanding of macroeconomic policies, which can easily lead to misunderstandings. my country’s economy has shifted from a stage of high-speed growth to a stage of high-quality development, and the macroeconomic policies have undergone significant changes as a result. The central government emphasizes improving macroeconomic governance, innovating macroeconomic control ideas and methods, enhancing the autonomy of macroeconomic policies, and implementing a proactive fiscal policy and a prudent monetary policy.
This means that our country will maintain the stability of its macroeconomic policies, strengthen the pertinence and effectiveness of the policies, and it is impossible to have a full-scale easing of flood irrigation. At the same time, the coordination of monetary policy, fiscal policy and industrial policy will be strengthened. While achieving the short-term stable growth target, attention will be paid to the improvement of the economic structure and the stimulation of endogenous power.
First of all, it is stability. The current situation at home and abroad is complex and severe, and my country’s economy is under new downward pressure, and it faces many challenges to maintain a stable operation on a high base. my country will continue to implement a prudent monetary policy, maintain reasonable and abundant liquidity, formulate policies around the needs of market entities, use a variety of currency tools, and reduce the RRR in due course. Taking real estate as an example, due to the risk exposure of individual companies, the growth rate of real estate development loans has fallen sharply. Under the policy adjustment, the reasonable funding needs of real estate companies are being met, and the policy goal of “housing and not speculating” will not change.
Secondly, it is accurate. The macro policy pays more attention to the pertinence and effectiveness of the policy. In response to the rising prices of bulk commodities and the tight supply, relevant departments have taken measures to strengthen economic operation adjustments, actively maintain supply and price stability, push coal prices down, and ensure power supply. This eased the pressure on bulk commodity prices to be transmitted to downstream small, medium and micro enterprises. Industrial production capacity is gradually released. These policies have been superimposed on a number of relief measures to help companies and have achieved positive results.
In order to exert force precisely, the system and coordination of policies are also strengthened. Recently, my country has set up a special reloan of 200 billion yuan to support the clean and efficient use of coal on the basis of the establishment of financial support tools for carbon emission reduction in the early stage. These two policies, a long-term strategy dedicated to serving the dual-carbon goal, and a guarantee for energy security, have formed the monetary policy and productionCoordination of industry policies.
Moreover, it’s tune. High-quality development needs to pay more attention to the supply side, and improve the potential economic growth level by optimizing the structure. To this end, in response to the momentum of high energy-consuming and high-polluting projects in some places, my country has resolutely curbed the blind development of “two highs” projects, introduced an electricity price adjustment plan, and proposed that high energy-consuming enterprises’ transaction electricity prices are not subject to a 20% increase.
The central government has repeatedly emphasized that the new development concept must be fully and accurately implemented. The current macro policy should also be viewed in this context. The policy will pay more attention to continuity and stability, systemicity and integrity, while taking into account short-term and medium- and long-term goals. It is far from being generalized by loose talk.