Since the beginning of this year, the central bank has continued to implement a prudent and neutral monetary policy, strengthened pre-adjustment and fine-tuning and anticipation management, and created a suitable monetary and financial environment for the continuous advancement of my country's high-quality economic development and supply-side structural reforms. It is worth emphasizing that, whether it is from the financial market or the real economy, it is not a sufficient and necessary condition for long-term and healthy development to implement the “flooding” type of liquidity. In the future, a sound and neutral monetary policy still needs to be implemented.

Some experts emphasized that "currency matching economy" is the core logic of prudent and neutral monetary policy. The significance of currency stability and neutrality lies in not only maintaining a reasonable abundance of liquidity, but also taking into account the requirements of financial risk prevention and stable leverage. At the same time, the new relationship between monetary policy and the real economy, fiscal policy, exchange rate policy, and financial supervision has also jointly determined the pre-adjustment and fine-tuning of monetary policy orientation.

The National Standing Committee held recently pointed out that a prudent monetary policy should be moderately tight. Maintain an appropriate scale of social financing and reasonable and sufficient liquidity, dredge the monetary and credit policy transmission mechanism, and implement various measures that have been introduced.

The introduction of new asset management regulations and other regulatory policies, the superposition of the State Council’s statement of monetary policy and the previous heavy operation of the Medium-term Lending Facility (MLF), have further confirmed the marginal relaxation of monetary policy and also reflected the orientation of monetary policy to a certain extent. Pre-tuning and fine-tuning.

Looking ahead, according to the economic situation of our country in the second half of the year, it is expected that monetary policy will continue to show marginal easing. From the perspective of RRR cuts, in order to maintain a reasonable ample liquidity, there is still the possibility of a RRR cut in the third quarter. Some experts predict that it is 0.5-1%, and the time may be selected in October when the tax is paid seasonally. At the same time, MLF and open market operations (OMO) will continue.

It is worth noting that the marginal easing of monetary policy does not mean that the policy is fundamentally shifted, nor does it mean comprehensive easing, but moderate easing while preventing risks and stabilizing leverage.

First of all, the central bank's recent operations have structural goals. For example, on April 25 this year, the central bank reduced the RRR for some financial institutions and replaced the MLF to increase support for small and micro enterprises and further increase the stability of the banking system. The targeted RRR cut on June 24 was to support market-based and legalized debt-to-equity swaps and small and micro enterprise financing. From this, it can be seen that the recent central bank operations are not "sweeping floods", but are targeted, allowing funds to better flow into more needed areas in the real economy. The focus of subsequent monetary policy will be to guide funds to support the real economy and assist in "stabilizing leverage," rather than simply total expansion.

Secondly, strict financial supervision has become normal. The illegal flow of funds into real estate and other fields will still be strictly prohibited, and the supervision of the flow of funds may continue to be strengthened in the future. For example, strengthen financial supervision on real estate, overcapacity areas, or "zombie companies". Grasp the flow of specific funds through multi-level supervision, and at the same time do more tracking of them, so that limited credit resources can be more effectively allocated, promote financial institutions to improve their ability to serve the real economy, and resolutely control credit resources in the above-mentioned fields. A good foundation has been laid for the implementation of appropriate monetary policy.

In addition, while the monetary policy will stabilize growth, it will work with macro-prudential management to prevent risks, which also determines that the monetary policy will remain stable and neutral.