1. Text: | Print|

      PBOC to use new tools for liquidity operations

      2014-07-22 08:25 China Daily Web Editor: Qin Dexing
      1

      The central bank will use unconventional monetary tools such as re-lending and pledged supplementary lending to maintain relatively loose liquidity, rather than turning to conventional tools including lowering interest rates or the reserve requirement ratio, said Zhu Haibin, chief China economist at JPMorgan Chase & Co.

      The People's Bank of China has developed two or three monetary tools to guide short- and medium-term interest rates via an effective monetary policy transmission mechanism, said PBOC Governor Zhou Xiaochuan on the sidelines of the China-US Strategic and Economic Dialogue in Beijing on July 10.

      Pledged supplementary lending, a lending instrument backed by collateral, is a new monetary tool to guide medium-term interest rates.

      "Previously, the PBOC mainly relied on the adjustment of the reserve requirement ratio, re-lending, central bank bills and open market operations to adjust the money supply.

      "Now, with the introduction of PSL, the central bank will tend not to cut the reserve requirement ratio. Instead, it will be able to increase money supply by using this new tool," said Zhu at a media briefing in Beijing.

      The central bank is trying to avoid large-scale economic stimulus measures for fear these could lead to a debt crisis. A uniform RRR reduction for all banks may cause money to flow into the housing sector and local government financing vehicles.

      "The PBOC is becoming increasingly reliant on innovative monetary tools. It's trying not to adjust interest rates or the reserve requirement ratio, because these aren't good measures to control the direction of capital flows. So the central bank is putting greater emphasis on targeted adjustment by using tools like re-lending and PSL," Zhu said.

      As PSL requires collateral, the PBOC is likely to use this method to provide targeted support to certain industries and projects such as promoting affordable housing construction, he said.

      China Development Bank Corp received a three-year PSL facility of 1 trillion yuan ($161 billion) from the PBOC. The money will be allocated to the housing finance department of the nation's largest policy lender, China Business News reported on Monday.

      An unidentified source told the Beijing-based newspaper that China Development Bank received low-cost, targeted funding from the central bank at an interest rate below 6 percent. Earlier this year, the central bank re-lent 300 billion yuan to CDB to finance urban renovation, the paper reported.

      Zhu said the PBOC has taken China's financial policy and economic restructuring into consideration while formulating monetary policy. But in the long run, monetary policy should focus on controlling inflation, maintaining financial stability and implementing financial reform, rather than taking on other tasks that are irrelevant to the functions of the central bank.

      Comments (0)
      Most popular in 24h
        Archived Content
      Media partners:

      Copyright ©1999-2018 Chinanews.com. All rights reserved.
      Reproduction in whole or in part without permission is prohibited.

      主站蜘蛛池模板: 午夜影视在线免费观看| 日本高清免费观看| 成人免费无码大片a毛片软件| 亚洲国产一区二区三区青草影视| 国产免费久久精品99久久| 亚洲精品成人片在线观看| 一级女性全黄久久生活片免费| 又爽又高潮的BB视频免费看| 国产青草亚洲香蕉精品久久 | 4399影视免费观看高清直播| 久久久综合亚洲色一区二区三区| 免费福利在线视频| 精品日韩亚洲AV无码 | 麻豆狠色伊人亚洲综合网站| 在线看片韩国免费人成视频| 亚洲第一成人在线| 成年女人永久免费观看片| 免费很黄无遮挡的视频毛片| 亚洲精品在线视频| 97人妻精品全国免费视频| 亚洲精品视频免费看| 免费av欧美国产在钱| 美女无遮挡免费视频网站| 久久精品国产亚洲AV不卡| 三年片在线观看免费大全电影 | 久久精品国产亚洲AV蜜臀色欲| 三年片在线观看免费观看高清电影 | 亚洲国产日韩在线成人蜜芽 | 亚洲一区二区三区在线视频| 免费看一区二区三区四区| 亚洲欧洲自拍拍偷午夜色| 日韩激情淫片免费看| 亚洲免费日韩无码系列| 亚洲美女中文字幕| 日韩在线视频免费看| 国产日韩AV免费无码一区二区 | 久久亚洲AV无码精品色午夜| 狠狠久久永久免费观看| 热久久这里是精品6免费观看| 亚洲国产精品午夜电影| 亚洲精品无码av天堂|