中国货币政策系列四：货币政策新框架，关注财政扩张和要素改革

Monetary Policy Adjustments - The central bank adjusted the OMO, SLF, and LPR rates by 10 basis points each on July 22, 2024[4] - The 7-day OMO operation shifted from "rate bidding" to "fixed rate, quantity bidding," allowing for an increase in reverse repo issuance scale[4] - The MLF operation did not see a rate cut, but the collateral requirements were relaxed on July 22, 2024[4] Economic Context and Expectations - The central bank aims to stabilize "loose" expectations and strengthen yield curve management amid positive economic signals from June data[6] - There is a growing necessity for macro counter-cyclical policies due to downward economic data from both China and the U.S. in June[6] - The adjustment in fiscal authority and responsibilities is expected to reduce uncertainty in policy spending, driving the expansion of fiscal financing needs[6] Future Implications - The new monetary policy framework indicates a shift in the transmission mechanism from "MLF→LPR" to "OMO→LPR," marking a significant step in interest rate marketization reform[28] - The central bank's focus on managing funding prices suggests a more stable expectation for market funding factors, which may accelerate market-oriented reforms in various sectors[30] - The LPR for 1-year is set at 3.35% and for 5 years and above at 3.85%, effective until the next announcement[19]