Financiers from the largest institutions of the world rushed to solve the Message of China and its Central Bank (People’s Bank of China), which, as they seem to be encrypted in the last report of the regulator on the directions and measures of monetary policy, writes CNBC.
The interest of specialists called several phrases present in the first published version of the report, but soon disappeared after editing. They said that the NBK would not resort to new significant monetary incentives like those that were used last year on the background of the beginning of the coronavirus pandemic.
In subsequent versions of the indication report on the further behavior of the regulator were absent. It came across analysts on the idea that in reality the NBK is preparing for the coming mitigation of monetary policy, in particular through a decrease in key bet or procurement programs for state and corporate securities.
According to the main economist of the Japanese Investbank Nomura in China Tinga Lu, this behavior of the NBK in the conditions of secrecy of the Chinese authorities as a whole can be regarded as an official statement about the change of the course of monetary policy. The financier noted that such behavior would be logical, since the country is experiencing the most acute economic downturn since 2015 without taking into account the first half of last year.
In addition, the publication disappeared references to the intentions of the NBK to control the money supply – the total amount of cash in the property of the population and companies (with the exception of financial organizations). In the usual situation, Central Banks tend to control the money supply due to the key rate and standards of mandatory bank reserves.
In this case, the position of the regulator regulator has been preserved in the final version of the report, the control of which it is going to tighten. The reason for this was the financial difficulties of several major developers at once, including Evergrande, which was on the verge of bankruptcy and already allowed several defaults on bonds.