Pan Gongsheng, President of the People's Bank of China, said that the central bank of China is studying the implementation of increasing buying and selling national bonds in open market operations, but this does not mean that it is quantitatively loose.
Comprehensive Financial and Securities Times reported that Pan Gongsheng said on Wednesday (June 19) at the Lujiazui Forum that the CPC Central Committee Financial Work Conference held in October last year proposed to enrich the monetary policy toolbox, andGradually increased trading in the open market operation of the central bank.The People's Bank of China is strengthening communication with the Ministry of Finance to jointly study and promote the implementation.
Pan Gongsheng said that this process is gradual, and the pace of government bond issuance, the term structure, the custody system, etc. also need to be studied and optimized simultaneously.
He also said: "It should be seen that incorporating the trading of national debt in the monetary policy tool box does not mean that it is necessary to quantify the looseness, but to position it as the basic currency launch channel and liquidity management tools.There are also selling, comprehensively matched with other tools to create a suitable liquidity environment together.The status of the financial market, timely correction and accumulation of the risk of the financial market. At present, especially paying attention to some non -silver subjects holding a large number of medium and long -term bonds and the risk of interest rate risks, maintaining normal and inclined yield curves, maintaining the marketFor the positive incentive of investment.
Pan Gongsheng also pointed out that in the regulation, the central bank will focus on grasping and handling the three -way relationship. First, the relationship between short -term and long -term.Take maintenance prices, push prices gently as an important consideration, and flexibly use policy tools such as interest rates, deposit reserve ratios, and other policy tools. At the same time, it maintains policy fixed power and does not enlarge it. Second, the relationship between stabilizing growth and risk prevention.Coordinate the relationship between supporting the growth of real economic growth and maintaining the health of financial institutions; the third is the relationship between internal and external.It mainly considers the need to regulate the domestic economic and financial situation, and take into account the spillover impact of other economy's economy and monetary policy cycle.
Former Chinese central bank consultant Yu Yongding wrote that China should break the taboos of quantitative loose (QE). The ultimate resolution of debt issues is not based on debt repayment but economic growth.
