Thursday , July 7 2022

Faith rises interest rate of 25 point points China central bank interest rate unchanged and then put 150 billion | Daily Economic News



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Although the President of US Trump has "repeatedly" turned into public, the interest rate hike is still on time.

On March 3, on December 20, Beijing time, the Federal Federation announced that the Fed had decided to raise interest rates of 25 base points to raise the federal reserve rate target range to 2.25% to 2.5%, taking into account current market labor conditions and inflation and expected. This is the fourth time the Fed raises interest rates this year, and also the magic left in the three years since the start of a cycle cycle and the interest rate.

It is worth noting that, as the Fed raise interest rates, China has not followed "growing interest rates" on financial policy. Instead, it has reversed operations before the schedule and increasing the launch in the market. On the pre-hike interest rate of the Fed interest rate, the People's Bank of China announced a medium-term lending facility (TMLF), which operates at a rate of 15 point points over the medium-term loan facility (MLF) rate.

What needs to be mentioned is that on the day when the hike announced the interest rate hike, that is, on December 20, the People's Bank of China continued to back up repurchase operations as "adequate", which launched a resettlement of 150 billion yuan by offering an interest rate. The 14-day operating rate remained unchanged from the previous level. This reaction fully demonstrates that financial policy complies with "predominantly of me" and maintains the effectiveness of financial policy considering co-ordination of the international economy and striving for a favorable external environment.

The expectations of China's central bank guide are in advance

This balance is reflected in the financial authorities that strengthen the expected guidelines, paying particular attention to the spread of risks in different markets such as bond markets, foreign exchange markets and stock markets, while & It maintains market stability with financial policy and macro-economical policies.

The expected guidelines are particularly evident in the fact that the Chinese financial authorities have released successively signing up to the market a few days before the Fed raise interest rates. Previously, given the reasonable liquidity, the repo deed was suspended for more than a month, but since this week, the People's Bank of China has restarted this money instrument and invested in the market through its number of days in a row .

Especially on the day before the Fed interest rate hike, on December 19, China People's Bank announced a brief news reminder: Today, through the market resettlement of the market in the central market, it has invested 60 billion yuan in liquidity. Since starting this week, he has invested 400 billion yuan. Market liquidity is reasonable and extensive, the liquidity of the banking system has increased, and market interest rates have been stable. The weighted average interest rate of DR007 today is 2.67%, which is 2 baseline below yesterday.

It can be said that this piece is long and the market is hot. The CITIC Securities Standing Income team announced a review of the "SMS" name by Yang Ma, stating that the central bank had launched a large scale relief of mitigation funds for three consecutive days, and through open market business announcements and news notices . The way to convey to the market is that the liquidity is reasonable and the financial policy orientation does not change, and market confidence is stabilized.

The comment also noted: "Tomorrow's morning is in keeping with the Fed's rate at interest rates, the market generally expects the Fed to continue to raise interest rates. Chinese central bank clear sign of free, stating that the financial policy is a free address is not changing, China's financial policy still exists The domestic economy is heavily. "

Regarding the Chinese financial authorities to handle the tactics and carefully observe the recent trends, in fact, from the recent speech of Yi Gang's central bank governor, they can also enjoy one or two.

In a recent public lecture, the central bank governor, Yi Gang, said that China's financial policy should continue to comply with "mainly", maintaining the effectiveness of the financial policy, taking into account the co-ordination of the international economy and strive for a favorable external environment.

When considering matters related to financial policy, finding a balance between internal balance and external balance. For example, if there is some pressure down and credit correction in the domestic economy, a financial condition will be a bit clearer, but if it's too free and the interest rate is too low it will be affect the exchange rate, so we have to consider the external balance and get in an internal balance and external balance. Point of balance.

Market performance is stable and manages

Now, the Fed is in a cycle cycling rate, Yi Gang said, but China's economy has a downward pressure and needs a fairly free financial condition. This is a typical confrontation that results from internal balance and external balance. At this point, the balance with internal balance and external balance, which is the best balance possible, needs to be found.

It can be seen that the actual operation of the real live formula is in line with the previous Yi Gang speech.

Look at market performance on December 20. In the domestic market, the DR007 interest rate center, recently accepted by the market, was 2.6399%, 2.6700% on the previous day and 3.11 baseline points on December 20. In terms of internal balance, liquidity is reasonable and adequate to further Support the development of the real economy.

From the perspective of the foreign exchange market, on December 20, RMB fell offshore and offshore against US dollar. Both real-time meanings broke by 6.91, but recovering the RMB on land below 6.91 in the afternoon.

This is a reminder of Yi Gang's recent speech. He noted that in considering the real economy, international factors need to be considered and striving for a favorable external environment. When we consider the exchange rate policy, we must maintain the flexibility of the exchange rate, which makes our balance more stable, more durable, and stable when there is some impact.

The exchange rate change since this year is mainly due to the strong index of the US dollar. Another factor that affects RMB's exchange rate is the Sino-US trade friction. Yi Gang, even in such circumstances, stated that the rebbi is still quite stable, and the changes in this year's renminbi are not much different from the sterling and # 39 ; r ewro. Everyone knows that the pound and the euro are important transferable money. When we regulate, we will address the anti-cyclical adjustment, and we will pay attention to the prevention of the "flock effect." When dealing with a cross border capital flow, macro-economical policies are used when needed to help stabilize market expectations. In general, we have enough adequate foreign exchange experience, equipment and reserves, and we have the foundation, confidence and ability to maintain the basic stability of RMB's exchange rate at a reasonable and balanced level.

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