First of all, I sincerely congratulate the great achievements made in the 30th anniversary of the construction and development of Financial Street! Over the past 30 years, under the leadership of the CPC Central Committee and the State Council, and with the strong support of the Beijing Municipal Party Committee and Municipal Government, Financial Street has adhered to the road of financial development with China characteristics and played an important role in serving the overall situation of national economic construction and social development.
Today, I would like to take this opportunity to share some views and ideas with you on issues related to monetary policy.
First of all, China's monetary policy has relatively strong support for the macro-economy.
Affected by sudden factors such as epidemic and external shocks, China's economy has faced some challenges and downward pressure this year, and a prudent monetary policy has been implemented in time. According to the deployment of the CPC Central Committee and the State Council, we will comprehensively use various monetary policy tools to reduce the RRR by 0.25 percentage points, guide the loan market quotation rate (LPR) to drop, and reduce the comprehensive financing cost of the real economy. China's broad money M2, social financing scale and RMB loans all maintained rapid growth.
Judging from the effect of economic operation, it is more appropriate to grasp the strength of China's macro policy. It not only strongly supports the stability of the overall macroeconomic situation, but also maintains the basic stability of the price situation under the background of high global inflation, and also takes into account the internal and external balance. In the third quarter, China's GDP increased by 3.9% year-on-year, and China's consumer price index (CPI) rose by 2. 1% year-on-year. In recent five years, the average annual increase of CPI has remained at around 2%. Since the beginning of this year, the RMB has depreciated against the US dollar, but the depreciation rate is smaller than other major currencies, maintaining the basic stability of the RMB value and purchasing power.
Second, while increasing support for the real economy, the balance sheet of the People's Bank of China has remained relatively stable in recent years.
By the end of September this year, the total balance sheet of the People's Bank of China was about 40 trillion yuan, with an average growth rate of 2.6% in the past five years, which remained relatively stable. In recent years, due to the growth of money and credit, we have reduced RRR to meet the needs of medium and long-term liquidity. We know that commercial banks need to pay a certain proportion of public deposits to the central bank, and the central bank will reduce this proportion when RRR is lowered, so that part of the statutory deposit reserve will become excess deposit reserve for commercial banks to use, so that the same central bank balance sheet can support more money and credit growth, which means that RRR interest rate reduction will increase the money multiplier. Since 20 18, we have implemented 13 RRR cuts, and the average statutory deposit reserve ratio has been reduced from 15% to about 8%. * * * The released long-term liquidity is about 10.8 trillion, and the balance sheet of the People's Bank of China is basically stable between 38 trillion and 40 trillion, while the balance of China's broad money M2 has increased from 20,655.
In the past period, the high deposit reserve ratio has made an important contribution to the stability of China's currency and the prevention of inflation. RRR's interest rate reduction operation can also be understood as releasing the liquidity that was "frozen" by raising the reserve ratio in the past. In the first decade of this century, in the process of accumulating foreign exchange reserves, the balance sheet of the central bank expanded due to foreign exchange holdings, and at the same time, hedging was carried out by raising the statutory deposit reserve ratio, thus "freezing" the excess liquidity of foreign exchange holdings. As far as the balance sheet size is concerned, the balance sheet size of the People's Bank of China at that time obviously exceeded that of the central banks of several major developed economies. However, in recent years, we have used RRR reduction, open market operation and structural monetary policy tools to actively invest and adjust liquidity, which has changed a lot compared with the passive investment of foreign exchange holdings in the past, and the autonomy of monetary policy has been significantly enhanced.
Thirdly, another feature of China's monetary policy is the combination of aggregate and structure.
A prudent monetary policy not only has aggregate support, but also has structural characteristics. We focus on the supply-side structural bottlenecks and difficulties, give full play to the role of structural monetary policy, continue to strengthen financial services for agriculture, rural areas and farmers, small and micro enterprises, private enterprises and other fields, and push inclusive finance to "increase in quantity, expand in area and reduce in price". As of the end of September this year, the balance of Pratt & Whitney small and micro loans reached 23 trillion yuan; The number of credit granting households is nearly 54 million, four times that of the end of 20 17; In September this year, the weighted average interest rate of inclusive microcredit was 4.7%, which was 1.8 percentage points lower than that of 438+07 in the same period of 2065.
Structural tools can be divided into long-term tools and phased tools. Re-lending and re-subsidizing agriculture are long-term tools, with a current balance of 2.5 trillion. In recent years, we have created special refinancing support tools such as scientific and technological innovation, transportation and logistics, and equipment renovation. These tools are all phased tools, and the current balance is about 3 trillion. These tools have a clear implementation period or exit arrangement, and can be withdrawn in an orderly manner after reaching the expected goal, so as to realize "advance and retreat".
Finally, I will talk about the role of structural monetary policy in the real estate market and green finance.
The real estate industry is related to many upstream and downstream industries, and its virtuous circle is of great significance to the healthy development of the economy. At present, there have been some adjustments in the real estate market. We cooperated with relevant departments and local governments to make good use of the policy toolbox of "one city, one policy", which reduced the interest rate and down payment ratio of individual housing loans and supported the demand for rigid and improved housing. In view of the risk exposure of some real estate enterprises in the early stage, we will issue a special loan of 200 billion yuan to support the construction and delivery of sold houses, and study and establish a structural policy tool to encourage commercial banks to support the "guaranteed delivery of buildings". Recently, the "second arrow" to support private enterprises to issue bonds has been expanded to provide risk sharing for private enterprises to issue bonds, and private real estate enterprises are also within the scope of support.
We have also launched carbon emission reduction support tools to help green development. The tool adheres to the principle of marketization and supports financial institutions to provide loans to enterprises in three key areas: clean energy, energy conservation and emission reduction, and carbon emission reduction technology. In addition to financial support, carbon emission reduction support tools also require financial institutions to account and disclose the carbon emission reduction driven by loans, which is of positive significance for guiding green concepts and promoting carbon accounting and information disclosure. By the end of September this year, more than 240 billion yuan of carbon emission reduction support tools have been used, more than 400 billion yuan of carbon emission reduction loans have been supported, and carbon emissions have been reduced by more than 80 million tons. Recently, we also included two foreign banks in the support scope of carbon emission reduction support tools.
Next, under the guidance of Xi Jinping Jinping's New Era Socialism with Chinese characteristics Thought, the People's Bank of China will continue to implement the spirit of the 20th Party Congress, build a modern central banking system, implement a prudent monetary policy, serve the real economy, prevent and control financial risks, and deepen financial reform. Continue to support the construction and development of Financial Street, support Financial Street to further play its role as a national financial management center, and contribute to the modernization of China!
I wish this Financial Street Forum a complete success. Thank you!