From "Four Steadies" to New Monetary Policy Exploration
Securities Times reporter, Sun Luolu
Against the backdrop of external shocks and uncertainties, the recent Central Political Bureau meeting emphasized the need for high-quality development in response to rapid changes in the external environment. The meeting reaffirmed the importance of economic work's "four steadies" (job stability, enterprise stability, market stability, and expectations) as key points. From the conference's deployment on monetary financial policy, structural monetary policy is expected to play a more significant role in guiding financial resources towards high-quality development.
In the face of complex circumstances requiring coordination between domestic economic transformation and international trade competition, traditional monetary policy tools such as reserve ratio cuts and interest rate reductions still have positive significance in transmitting moderate easing signals to the market and stabilizing expectations. However, in this new context, enhancing support for real economy with targeted and effective measures is crucial, and innovative structural monetary policy tools are a viable path for exploring new ways and means.
The meeting proposed setting up new structural monetary policy tools to focus on supporting technological innovation, expanding consumer spending, stabilizing foreign trade, and establishing service-oriented finance and pension loans. Some of these fields already have existing structural monetary policy tools in place, while others require the creation of new tools. The existing technology innovation refinancing, technology innovation and transformation refinancing, and universal pension special refinancing are all stage-specific tools that will be expanded through measures such as extending repayment periods, increasing loan amounts, reducing interest rates, and optimizing refinancing conditions.
Structural monetary policy tools will be implemented through market-oriented incentives to guide financial institutions to channel credit resources more towards key economic sectors and weak links. In comparison, policy-based financial tools belong to the composition of monetary financial policy and also have features of fiscal policy. This time, the meeting emphasized strengthening countercyclical adjustment measures, and policy-based financial tools are expected to play a role in countercyclical adjustment, further strengthening coordination between monetary and fiscal policies in fields such as technological innovation and stabilizing foreign trade.
Perseverance is the key. In the face of external uncertainty, China will focus on high-quality development through strategic resilience, combining countercyclical regulation with deepening reform to stabilize the overall economy. Monetary policy will make new explorations and better support real economic transformation.