Newest! Central Bank Voice! Involving Monetary Policy, Digital RMB, Loan Interest Rate

On August 25, Mr. Xiao Feng, director of the State Council's financial supervision commission, gave a briefing on the implementation of the policy of the people's Bank of China Feng also attended the meeting and answered questions from reporters.

·Sun Guofeng: monetary policy needs more certainty to cope with various uncertainties and keep the three unchanged

Sun Guofeng, director of the Monetary Policy Department of the people's Bank of China, said that the uncertainty brought about by the epidemic situation has increased, and monetary policy needs more certainty to cope with various uncertainties, That is, the three invariants: the steady monetary policy orientation, the flexible and moderate operation requirements, and the determination to adhere to the normal monetary policy remain unchanged.

We have not adopted any unconventional monetary policy, such as zero interest rate or even negative interest rate, and quantitative easing, so there is no so-called exit problem.

·Sun Guofeng: there is no timetable for the official launch of digital RMB

Sun Guofeng, director of the Monetary Policy Department of the people's Bank of China, said that at present, the research and development of digital RMB is following the principle of "steady, safe, controllable, innovative and practical", and is conducting internal closed pilot tests in Shenzhen, Suzhou, xiong'an, Chengdu and future winter Olympic Games to test the theoretical reliability, system stability, functional availability, process convenience and scene suitability Usability and risk controllability. Therefore, at present, digital RMB is still in the stage of internal closed pilot test and has not been officially launched.

In the next step, the people's Bank of China will continue to steadily promote the research and development of digital RMB, There is no timetable for the official launch of digital RMB.

·Sun Guofeng: it is expected that the interest rate of subsequent enterprise loans will further decline

Sun Guofeng, director of the Monetary Policy Department of the people's Bank of China, said that the trend of LPR in the future depends on factors such as macroeconomic trend, inflation situation, supply and demand in the loan market, and it depends on the market-oriented quotation of the quotation bank.

At the same time, we should also see that LPR and loan interest rate is not a simple corresponding relationship. In July 2020, the enterprise loan interest rate decreased by 0.64 percentage points year-on-year, which was significantly higher than that of LPR in the same period, which reflected the effect of LPR reform to dredge the interest rate transmission mechanism.

As the LPR reform further releases the potential of reducing loan interest rates, It is expected that the interest rate of subsequent corporate loans will further decline.