Stable price, stable exchange rate and low financing cost. The central bank’s monetary policy serves the high-quality development of the economy.

Beijing, March 3 (Reporter Jiang Yong) According to Global New Financial News, the economic voice of the Central Radio and Television General Station, Yi Gang, governor of the People’s Bank of China, pointed out at a series of news conferences on the theme of "Authority begins" held by the State Council Office on March 3 that the central bank accurately and forcefully implemented a prudent monetary policy, improved the ability and quality of financial services to the real economy, kept the bottom line of no systemic financial risks, and created a suitable monetary and financial environment for high-quality economic development.

The central bank’s prudent monetary policy has strongly supported the high-quality economic development, and these effects are mainly reflected in "three stabilities and one low". "Three stabilities" refers to stable prices, stable operation of financial industry and stable RMB exchange rate; "One low" means that the financing cost of enterprises is low.

Steady and normal monetary policy provides a solid foundation for price stability.

The first stability of "three stabilities" is price stability. In the past year, price stability has not come easily. Last year, global inflation was serious, the highest in more than 40 years. Europe, the United States, and many countries all had high inflation rates of 8%, 9%, and 10%. China adheres to a prudent and normal monetary policy, which provides a solid foundation for price stability.

Yi Gang said: "Our country’s consumer price index (CPI) rose by 2% last year, which is an ideal level of inflation. If we zoom in a little longer, look at the past decade, that is, the decade from 2013 to 2022, and China’s inflation index averaged 2%. "

The number of high-risk small and medium-sized financial institutions has dropped by half, and the overall financial risks have converged.

The second stability of "three stabilities" is financial stability. The financial market and financial infrastructure operated steadily, maintaining the overall economic and social stability. In the past few years, the central bank has steadily defused the risks of key institutions, including decisively taking over Baoshang Bank, resolutely breaking the rigid payment, smoothly defusing the risks of small and medium-sized financial institutions such as hengfeng bank, Jinzhou Bank and Liaoning City Commercial Bank, and defusing the risks of high-risk groups such as Tomorrow Department, Anbang Department, Huaxin Department and HNA Group.

Yi Gang said that China has kept the bottom line that systematic financial risks do not occur, and the overall financial risks are convergent. "The number of high-risk small and medium-sized financial institutions has dropped from more than 600 to more than 300, a drop of half, and many provinces have no high-risk institutions at present. Fully implement the new asset management regulations, reduce the scale of’ credit-like’ high-risk shadow banking by about 30 trillion yuan, promote the special rectification of Internet financial risks, and all nearly 5,000 P2P online lending institutions have closed down. All deposit-taking financial institutions in the country have joined deposit insurance, and our deposit insurance can provide full protection for more than 99% of depositors. "

Yi Gang revealed that the Financial Stability Law has passed the first deliberation of the National People’s Congress. The central bank will promote the promulgation of the financial stability law, and all kinds of financial activities will be regulated according to law to protect the interests of the overwhelming majority of ordinary people, small and medium-sized investors and the insured.

It is not a psychological barrier for RMB to break "7" against the US dollar.

The last of the "three stabilities" is the stability of the RMB exchange rate. The stability of exchange rate is related to the comprehensive national strength of the country and the well-being of the people. Yi Gang said that in the past five years, the exchange rate volatility was about 4%, which was similar to that of major countries in the world. Generally speaking, the RMB exchange rate will remain basically stable at a reasonable and balanced level.

Yi Gang said: "In the past few years, the exchange rate of RMB against the US dollar has broken’ 7′ three times, but it has returned to below’ 7′ in a short time, so everyone can see that’ 7′ is not a psychological obstacle. After breaking’ 7′ three times, it has returned to below’ 7′. The whole economy is stable, and people expect it to be stable. It is convenient for enterprises to exchange foreign exchange and ordinary people to purchase foreign exchange.

Reducing financing costs supports the recovery and development of the real economy.

"One low" refers to the low financing cost of enterprises. Last year, inflation in the world was very high, and major central banks in the world raised interest rates substantially. China did not raise interest rates last year, but lowered interest rates twice, which led to the decline of financing costs of enterprises and effectively supported the recovery and development of the real economy.

Yi Gang said: "Last year, the average interest rate of our new corporate loans was 4.17%, which was 1.28 percentage points lower than that in 2018. The interest rate of our inclusive micro-credit loans dropped from 6.3% in January 2018 to 4.9% in December last year, which are historically low levels. From the perspective of financing costs, it supports small and micro enterprises. "

The transaction activity in the real estate market has increased, and the financing environment for high-quality housing enterprises has improved significantly.

At present, the steady and healthy development of the real estate market has attracted much attention. Pan Gongsheng, deputy governor of the central bank and director of the State Administration of Foreign Exchange, said that with the improvement of the epidemic situation, the adjustment of epidemic prevention and control policies, and the effectiveness of previous policies, the confidence in the real estate market has been accelerated recently, the activity of transactions has increased, and the financing environment of the real estate industry, especially high-quality housing enterprises, has improved significantly.

Pan Gongsheng said: "From September to December last year, real estate development loans increased by 230 billion yuan, an increase of 420 billion yuan year-on-year. In the fourth quarter, real estate enterprises issued 120 billion yuan in domestic bonds, up 22% year-on-year. In January this year, real estate development loans increased by more than 370 billion yuan, an increase of 220 billion yuan over the same period of last year; Domestic real estate bonds issued 40 billion yuan, a year-on-year increase of 23%. "

Preventive savings are expected to gradually return to normal after macroeconomic improvement.

Liu Guoqiang, deputy governor of the central bank, responded that the epidemic situation had a certain impact on residents’ consumption, and residents’ risk preference decreased, investment growth slowed down, which promoted the increase of deposits.

Liu Guoqiang said: "In 2022, household deposits increased by 17.84 trillion yuan, an increase of 7.94 trillion yuan over the previous year. Since this year, household deposits have continued to maintain the momentum of rapid growth. In January, household deposits increased by 6.2 trillion yuan, an increase of 790 billion yuan. With the improvement of macro-economy, residents’ confidence in consumption and investment will be enhanced, and residents’ savings will gradually return to normal. Precautionary savings accumulated in the early stage are expected to be gradually released into actual consumption demand. After the economy improves, it will help to enhance residents’ investment confidence, and residents’ investment will gradually return to normal levels. "