The Zhitong Finance App learned that the People's Bank of China has adjusted and improved a number of monetary policy instruments and lowered interest rates on supplementary mortgage loans (PSL) by 0.25 percentage points. Interest rates on one-year mortgage supplements have been reduced from 1.75% to 1.5%, providing better incentives for policy banks to support the real economy and serve the national strategy. At the same time, the area of mortgage supplementary loan support will be expanded. Integrate “six networks” construction such as water grids, new power grids, computing power networks, next-generation communication networks, urban underground pipelines, and logistics networks into the field of mortgage supplementary loan support, guide policy banks to increase financial support for the “six networks” construction, help expand effective investment, and further tap the potential of domestic demand.
The original text is as follows:
The People's Bank of China adjusts and improves a number of monetary policy instruments
In order to implement the spirit of the Politburo meeting and the arrangement of the Executive Meeting of the State Council and implement a moderately loose monetary policy, the People's Bank of China decided to further adjust and improve several monetary policy tools on the basis of giving full play to the effectiveness of various stock policies, create an appropriate monetary and financial environment for steady economic growth, high-quality development and the stable operation of the financial market, promote the continuous development of the economy in a new and positive direction, and support the “15th Five-Year Plan” to achieve a good start.
The first is to lower interest rates on supplementary mortgage loans (PSL) by 0.25 percentage points. Interest rates on one-year mortgage supplements have been reduced from 1.75% to 1.5%, providing better incentives for policy banks to support the real economy and serve the national strategy.
The second is to expand the area of mortgage supplementary loan support. Integrate “six networks” construction such as water grids, new power grids, computing power networks, next-generation communication networks, urban underground pipelines, and logistics networks into the field of mortgage supplementary loan support, guide policy banks to increase financial support for the “six networks” construction, help expand effective investment, and further tap the potential of domestic demand.
The third is to increase the reloan amount for scientific and technological innovation and technological transformation by 200 billion yuan, and uniformly increase the support ratio for this reloan from 60% to 100%. After the increase, the reloan amount for scientific and technological innovation and technological transformation increased from 1.2 trillion yuan to 1.4 trillion yuan, and the support ratio was higher, which helped guide banks to increase loan investment in small and medium-sized technology enterprises and better support enterprises to expand investment in equipment renewal in key areas.
Fourth, the amount of small reloans to support agriculture was increased by 500 billion yuan, of which the reloan amount for private enterprises was increased by 300 billion yuan. After the increase, the amount of small reloans and rediscounts to support agriculture increased from 4.35 trillion yuan to 4.85 trillion yuan, of which the reloan amount for private enterprises increased from 1 trillion yuan to 1.3 trillion yuan, which will further encourage local legal banks to increase credit support for agricultural, small and micro enterprises, especially small, medium and micro private enterprises.
The People's Bank of China will continue to make comprehensive use of various monetary policy tools in accordance with macroeconomic performance, price trends, and macro-control needs to maintain abundant liquidity, guide the regulation and control of interest rates, and serve the high-quality development of the real economy.
This article was selected from the official website of the “People's Bank of China”, Zhitong Finance Editor: Liu Jiayin.