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Effectiveness Of Tight Monetary Policy

2008/4/14 10:52:00 29

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The Result Of Tight Monetary Policy Is Obvious.

The monetary and credit data released by the central bank yesterday showed that monetary and credit data slowed down in March under the cumulative effect of tight monetary policy. The central bank also made public for the first time: "the effectiveness of tight monetary policy is emerging".

Data show that in March this year, RMB loans of financial institutions increased by 283 billion 400 million yuan, or 158 billion 300 million yuan less than the same period last year.

In the first quarter, the balance of RMB loans of financial institutions reached 27 trillion and 500 billion yuan, an increase of 14.78% over the same period last year, an increase of 1.32 percentage points lower than the end of last year.

Statistics show that since November 2006, the growth rate of loans has dropped to below 15% for the first time, resulting in a marked slowdown in the growth of loans that lasted for 15 months.

In addition, at the end of 3, M2 grew by 16.29% over the same period last year, an increase of 1.19 percentage points lower than the end of last month. This is the first time that M2 has fallen below 17% this year.

At the same time, M1 also dropped by 0.95 percentage points from the end of last month, down to 18.25% year-on-year.

In July 3, 2007, the central bank's Monetary Policy Committee put forward a steady monetary policy in the second quarter regular meeting, and was moderately tight. After that, the central economic work conference held in December 2007 decided to adjust the ten year long "prudent monetary policy" to "tight monetary policy".

After the tight monetary policy decision was made, the central bank immediately took relevant measures.

According to the analysis of the insiders, under the influence of the continuous "combination boxing" regulation tools, the overall situation of monetary and credit in the 1 quarter of this year is more optimistic, which initially meets the requirements of tight monetary policy regulation.

However, Ha Jiming, chief economist of CICC, expects monetary tightening policy to continue.

Yin Jianfeng, director of the Financial Research Office of the Academy of Social Sciences, said in an interview with reporters that the economy has downside risks and tight monetary policy should be appropriately slowed down.

The central bank and the General Administration of customs also released data on foreign trade surplus and foreign exchange reserves yesterday.

Data show that exports in the first quarter amounted to 305 billion 900 million US dollars, an increase of 21.4%, down 6.4 percentage points from the same period last year, and imports of US $264 billion 480 million, an increase of 28.6%, which is 9.4 percentage points higher than that of the same period last year.

By the end of 3, the balance of foreign exchange reserves amounted to US $1 trillion and 682 billion 200 million, and the reserves increased by US $153 billion 900 million in the first quarter.

It shows that in the case of slowing exports and declining trade surplus, the inflow of foreign exchange actually shows an increasing trend.

//cn.jxmmtv