1、Monetary policy is the comprehensive loose or fine-tuningThe peoples bank of China announced on November 30, from December 5, 2011 on, itll cut deposit financial institutions RMB deposit reserve rate down by 0.5%.This is the first time for central bank cut the deposit reserve rate down in three year
2、s .Economists believe that cutting the reserve fund rate will help keeping the steady and fast growth the economy in the current complex situation. The deposit reserve, which is financial institutions to ensure client extraction deposit and fund settlement need that prepared at the central bank depo
3、sit, the central bank of the deposit reserve requirements of the proportion of the total deposit is deposit reserve rate. The proportion of deposit reserve is usually decided by the central bank, which is called the deposit reserve ratio.The deposit reserves aim is to ensure that commercial Banks ca
4、n have quite enough ability to pay off when they meet great amount of extracting deposit suddenly. Since the 1930 s, the deposit reserve requirements system has become an important method of adjusting the state economic, which also is a system of the central bank to control business banks credit sca
5、le. The deposit reserve can adjust the economy. Raising deposit reserve rate when the economy is overheating in choosing the bank. Cutting the deposit reserve rate is a sign of loosening monetary market financing volume. The consumer price index (CPI) has been consecutively dropped in three months,
6、which reflect inflation trend getting preliminarily holding back. I think the central bank cut the deposit reserve rate has something to do with inflation remission. The price of pork, vegetables, and other food also gradually declined, moreover, food prices still has space of reduction in the futur
7、e market.The influence of the property marketTo the lack of money for the property market, the cutting of deposit reserve rate means that the bank will have more money for credit, developers can get money from the bank will also be increased, this measure of the central bank let a part of the develo
8、pers who are in the brink of ruin see the gleam of light.As for house purchaser is also concerned, the increased amount of home loans has to a certain extent alleviated the problem of difficulty in loan, however cutting reserve rate is not cutting interest rate, because of the house purchasers commo
9、n preconceptions about riding the fence, its so hard to have no alleviating effect.The influence to small and medium enterprisesWith the credit crunch, Chinese small and medium-sized enterprise widely encountered “money shortage“ troubling from the beginning of this year, in this cutting small and m
10、edium-sized enterprises will first being credit supported under the support policy. But the present market is all in the shortage of capital, bank can not always allocate more resource to small and medium-sized enterprises. So cutting deposit reserve rate can improve the situation lacking of money t
11、hat small and medium-sized enterprises suffered, but it wont change much. Funds will flow to the better enterprise, and the money is still relative wanting in relatively poor enterprises.The influence of the stock marketPeople always treat the stock market as a barometer of economic. Stock market is
12、 bad from the beginning of this year, and constantly tightening monetary policy and the high speed of new stock issuing are “two mountains“ which heavily press on the market .The cutting of reserve fund rate is a signal which indicate that even if monetary policy is not loosening, it also wont squee
13、ze at least, this make downward pressure on the stock market is leased greatly. And from the time policies announced, choose posted on the day that the stock market crash, whether its in coincidence or not , but to investors it can generate theirs psychological support somehow in achieving maximum r
14、esults with little effort.Review the performance of the stock market after adjusting the deposit reserve rate in recent years, you can see after each previous adjusted, the ups and downs of the market right next day havent shown strong regularity. The stock market may increase up right after raising
15、 deposit reserve rate, and may also down right after cutting the deposit reserve rate. But if the deposit reserve rate appears tendency adjustment, it often can bring significant influence on the stock market.From our country on the introduction of the monetary policy look, the current monetary poli
16、cy and economic adapt, stabilize prices should also is the top priority of the government, at present our country some prices have a certain degree of factors control, but no basic and eliminate, inflation remains high and the general level of commodity prices steady is still the primary task of mac
17、roeconomic control. Need to continue to follow a prudent monetary policy, maintain stable monetary credit moderate growth. Need to continue to follow a prudent monetary policy, maintain stable monetary credit moderate growth. On the steady monetary policy, and not restrain the development of our nat
18、ional economy. Some people think that, M1 and M2 fell sharply in the first half of the continuous monetary control means that influence the overall monetary conditions, enterprise production active descend, economic risk facing a downturn. But the bank said that, since this year, M2 growth from high
19、 to normal smooth back, in line with expectations and stable macroeconomic regulation and control of monetary policy. At present, our countrys financial innovation has increased, the diversification of public assets structure, especially since this year commercial bank financing products outside the
20、 watch the rapid development, accelerate the deposit, separating these alternative financial assets not counted in the money supply, which made the statistics of the actual conditions of the M2 than have underestimated. Our continuing to follow a prudent monetary policy will not change direction, pr
21、actice may increase the flexibility of the application, a moderate to relax credit to support small and medium enterprise financingAs a consequence of the above analysis, the cutting of deposit reserve rate has certain stimulation effect to the present economic, alleviated the current problem of lac
22、king funds in money market. But the cutting of deposit reserve rate doesnt necessarily mean that the country will loosen the control of monetary flow. Transform the tight monetary policy to partial loose also need a fully consider about the CPI movements, the deposit reserve rate cutting by 0.5%, this fine-tuning measure is the reflection of watching the market, Chinas economic policy will continue the “ proactive fiscal policy and prudent monetary policy“.
