On June 19, 2024, Pan Gongsheng, Governor of the People’s Bank of China, delivered a speech at the 2024 Lujiazui Forum in Shanghai, China.
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Beijing – People’s Bank of China Governor Pan Gongsheng will address reporters on Tuesday along with two other heads of financial regulators.
This relatively rare high-level press conference was scheduled after the United States Fed Interest rates were cut last week. This has started an easing cycle. In theory, China’s central bank has room to further cut interest rates and boost economic growth in the face of downward pressure on the economy. deflationary pressure.
Mr. Pan will take office as Governor of the People’s Bank of China in July 2023. At his first press conference as central bank governor In January, Pan said the People’s Bank of China would cut the amount of cash required by banks, known as the deposit reserve ratio (RRR). Such policy announcements are rarely made during such events and are usually disseminated online and through official media.
He then told reporters in March, during China’s annual National People’s Congress session, There is room for further RRR cuts. This reduction is widely expected to occur in the coming months.
Unlike the Federal Reserve, which focuses on key interest rates, the People’s Bank of China uses a variety of interest rates to manage monetary policy. The People’s Bank of China on Friday did not change its prime lending rate, a benchmark that affects loans to businesses and households, including mortgages.
China’s government system also means policymaking goes far beyond Tuesday’s speech by financial regulators. Such high-level meetings in July called for efforts to achieve full-year growth targets and expand domestic demand.
Although the People’s Bank of China has kept its prime lending rate unchanged since the Fed cut interest rates, it has begun to lower short-term interest rates that determine the money supply. People’s Bank of China Monday Lower the 14-day reverse repo rate Raised 10 basis points to 1.85%, but did not lower the 7-day reverse repo rate July cuts to 1.7%. Pan expressed his hope 7-day interest rate becomes main policy rate.
China’s economic growth has slowed, weighed down by sluggish real estate and sluggish consumer confidence. Economists call for More excitementespecially in terms of finances.
Shan Hui, chief China economist at Goldman Sachs, said: “In the past year, policy easing, including monetary, fiscal and housing policies, has been slow and gradual. This easing approach has in turn led to the formation of various negative feedback loops in the economy.” a team said in a Sept. 22 report.
Their analysis shows that local government bond issuance is more committed to solving budget shortfall rather than supporting additional growth.
Other senior regulatory officials spoke
Li Yunze, director of the State Financial Supervision Bureau, and Wu Qing, chairman of the China Securities Regulatory Commission, are also scheduled to speak at Tuesday’s press conference.
The State Financial Supervision and Administration Bureau was established last year Beijing comprehensively reforms financial supervision system. It replaced the Banking and Insurance Supervisory Authority and expanded its responsibilities for overseeing investor protection and supervising financial holding companies. The two previously fell under the purview of securities regulatory agencies and the central bank respectively.
Wu was appointed chairman The CSRC made the recommendation in early February after the stock market plunged. Previously, he served as head of the Shanghai Stock Exchange.
