Vice president of the central bank: there will be no large-scale inflation

Novel coronavirus infection prevention and control mechanism was recently released by many regulators in the news conference of the joint prevention and control mechanism of new coronavirus infection. The premise of maintaining a stable monetary policy has not changed. China will not face massive inflation. At the same time, we should fully consider the objective impact of the epidemic and appropriately improve the tolerance of non-performing loan supervision. In addition, the balance of payments situation will not be easily changed due to the short-term impact of the epidemic situation. In the future, China's balance of payments still has the basis and conditions to continue the basic balance pattern. Fan Yifei, deputy governor of the people's Bank of China, said that it is still a process for the resumption of production, which will bring some pressure to price stability on both the demand side and other aspects.

"But the premise of maintaining a stable monetary policy has not changed. We will take timely measures to adjust these problems, and we believe that China will never have large-scale inflation." Liang Tao, vice chairman of the China Banking and Insurance Regulatory Commission, said that as a regulatory department, the CBRC would take a pragmatic attitude towards banks in areas seriously affected by the epidemic, give full consideration to the objective impact of the epidemic, appropriately improve regulatory tolerance, give a certain grace period for regulatory indicators to reach the standard, or make some flexible arrangements in regulatory measures. Fan Yifei said that in the next step, the tolerance of non-performing loans of commercial banks may be adjusted. He believed that through efforts, the problem of non-performing loans could be properly solved. On the whole, the proportion of non-performing loans in China is relatively low, and there is much room for adjustment. I believe that we can properly deal with this problem. Liang Tao said that the next step will be to increase the credit guarantee and investment for the resumption of work and production in key areas. We will guide financial institutions to further increase credit support for enterprises returning to work and production, further increase the proportion of enterprise credit loans and medium - and long-term loans, and keep financing costs at a reasonable level. For the capital demand of purchasing raw materials and equipment that enterprises may face when they return to work and production, we should reasonably increase the loan support of working capital.

It is necessary to guide institutions to play the role of baton in performance appraisal, consider to include the situation of supporting manufacturing, small and micro enterprises, private enterprises and other key areas to resume production in an appropriate way into the appraisal index system, or reasonably adjust the appraisal weight, and stimulate the enthusiasm of grass-roots outlets and front-line business personnel. The balance of payments has the basis to continue the basic balance pattern. Talking about the expectation of the balance of payments, Xuan changneng, deputy director of the State Administration of foreign exchange, said that in recent years, China's balance of payments has maintained a basic balance, reflecting the rational optimization of the deep-seated economic structure and the policy effect of China's adherence to reform and opening up. Novel coronavirus pneumonia will not change easily due to the short-term impact of the new crown pneumonia epidemic. "The impact of the epidemic is temporary and limited. In the future, China's balance of payments will still have the basis and conditions to continue the basic balance pattern." Xuanchangneng stressed that, first of all, the current account is expected to maintain a small surplus.

China's manufacturing industry chain is complete, accelerating transformation and upgrading, and the international competitiveness of related products is still strong; China's foreign investment structure continues to be optimized, and the foreign investment income has increased, and the investment income situation is expected to gradually improve. Secondly, China's cross-border capital flows will still be dominated by stable operation. The short-term impact of the epidemic will not change the fundamentals of the long-term good and high-quality development of China's economy, and it is expected that the overall direct investment surplus will continue; the steady increase of financial openness will attract more foreign investors, which is conducive to maintaining the net inflow of funds under securities investment; In recent years, the two-way floating of RMB exchange rate has played an important role in the cultivation of rational market expectations, and the foreign exchange transactions of enterprises, individuals and other market entities in China are more rational. Xuanchangneng said that in general, under the complex and changeable external environment, China's balance of payments can achieve basic balance, which reflects the strong adaptability of the financial system, and also shows that the foundation of internal and external balance and stability of China's economy is stable. In the future, we have the ability and confidence to cope with the impact of various internal and external disturbance factors and maintain the basic balance of payments and stability.