A list of the central bank's ten monetary policy measures, including reserve requirement ratio cuts and interest rate cuts

Source: State Council Information Office

At 9:00 on May 7, the State Council Information Office held a press conference and invited the heads of the People's Bank of China, the State Financial Supervision and Administration Bureau, and the China Securities Regulatory Commission to introduce the relevant situation of "a package of financial policies to support the stabilization of the market and expectations".

Pan Gongsheng, Governor of the People's Bank of China, said that in order to implement the spirit of the meeting of the Political Bureau of the Central Committee on April 25, further implement a moderately loose monetary policy, and promote high-quality economic development, the People's Bank of China will increase the intensity of macroeconomic regulation and introduce a package of monetary policy measures.

There are three main types of policies:First, quantitative policies, through measures such as lowering the reserve requirement ratio, increase the supply of medium- and long-term liquidity, and maintain ample market liquidity. Second, price-based policies, lowering the policy interest rate, lowering the interest rate of structural monetary policy tools, and at the same time lowering the interest rate of provident fund loans. Third, structural policies, creating and stepping up the implementation of structural monetary policy tools to support technological innovation, expanding consumption, inclusive finance and other fields.

The ten major measures are as follows:

First, reduce the deposit reserve ratio by 0.5 percentage points, which is expected to provide about 1 trillion yuan of long-term liquidity to the market.

Second, improve the deposit reserve system, and phase out the deposit reserve ratio of auto finance companies and financial leasing companies from the current 5% to 0%.

Third, reduce the policy interest rate by 0.1 percentage point, that is, the 7-day reverse repurchase operation interest rate in the open market from the current 1.5% to 1.4%, which is expected to drive the loan market benchmark rate (LPR) down by about 0.1 percentage point.

Fourth, reduce the interest rate of structural monetary policy tools by 0.25 percentage points, including: various special structural tool interest rates, agricultural and small business re-loan interest rates, all from the current 1.75% to 1.5%; mortgage supplementary loan (PSL) interest rate from the current 2.25% to 2%.

Fifth, reduce the interest rate of individual housing provident fund loans by 0.25 percentage points, and the interest rate of the first set of housing with a term of more than five years will be reduced from 2.85% to 2.6%, and the interest rates of other terms will be adjusted simultaneously. #A package of financial policies to support stable market and stable expectations#

Sixth, increase the re-lending quota for scientific and technological innovation and technological transformation by 300 billion yuan, from the current 500 billion yuan to 800 billion yuan, and continue to support the implementation of the "two new" policies.

Seventh, set up 500 billion yuan of "service consumption and pension re-lending" to guide commercial banks to increase credit support for service consumption and pension.

Eighth, increase the re-lending quota for supporting agriculture and small businesses by 300 billion yuan, and form a synergistic effect with the policy of lowering the interest rates of related tools, and support banks to expand loans to agriculture-related, small and micro and private enterprises.

Ninth, optimize two monetary policy tools to support the capital market, and combine the 500 billion yuan swap facility for securities, funds and insurance companies and the 300 billion yuan re-lending quota for stock repurchase and increase holdings, with a total quota of 800 billion yuan.

Tenth, create a risk-sharing tool for science and technology innovation bonds. The central bank provides low-cost re-lending funds to purchase science and technology innovation bonds, and cooperates with local governments, market-based credit enhancement institutions, etc., through diversified credit enhancement measures such as joint guarantees, to share part of the default loss risk of bonds, and provide support for science and technology innovation enterprises and equity investment institutions to issue low-cost, long-term science and technology innovation bonds for financing.

Next, the People's Bank of China will continue to conscientiously implement the various arrangements of the Party Central Committee and the State Council, implement a moderately loose monetary policy, continue to do a good job in monetary policy regulation based on the domestic and international economic and financial situation and the operation of the financial market, and strengthen coordination with fiscal policy to promote high-quality economic development.