Market long-awaited first cut this year the deposit reserve rate movements, finally came. February 18, at night, the central bank said public announcement, from February 24 st, cut deposit financial institutions RMB deposit reserve rate 0.5%. According to estimates, as this time drop a few days after the execution of be, there will be 400 billion yuan liquidity released, to enter the market. Use the deposit reserve rate the lever to regulate the market liquidity, the central bank in recent years is frequently used means, it has become the central government of macro economic control an important monetary policy tools. Prime minister wen jiabao recently held in the symposium on many times, said macroeconomic regulation and control policy, trimming under attack from the quarter is about to start.baseball sunglasses The central bank's this action is the end, according to earlier this year the changes of macro-economic conditions make a preset, fine-tuning. Shortly before the national bureau of economic data show that in January, although year-on-year growth of 4.5% for the consumer price index (CPI), keep manageable, but PPI index rose 0.7% year-on-year, annulus comparing index appeared a 0.1% drop, the industrial production of raw materials prices dropped. At the same time, the ministry of commerce, according to figures released in January this year actually using a foreign investment of 9.997 billion, 0.3% year-on-year drop, this is the third consecutive month appear negative growth. The general administration of customs, according to figures released on January this year, China's foreign trade import and export total $272.6 billion, 7.8% year-on-year drop, import and export both dropped. All aspects of data are concentrated in a must face to the fact that since last year the execution of the tightening monetary policy is to face the problem of shortage of market liquidity, has a direct influence on the functioning of the entity economy, it is actually make CPI the significance of the balance a discount. Therefore, the central bank of the drop in the economic operation must be the new changes made in a timely adjust. So, in the drop must, released 400 billion yuan of money whether can change the present economic operation of the these problems play a role? Answer the question, the key should see the money flowing to release any place. We can't forget is that the end of 2008 in order to fight against global financial crisis XiRao, China issued a moderate but monetary policy, each big commercial bank lending to actively. But, loose liquidity failed to flow to the most need of the entity economy, particularly the most need financial support of small and medium-sized private enterprises, but a lot of the flow of government investment projects and real estate market, the stock market and other fields, and led to the flooding of fictitious economy bubble, the sequela until today there is no can completely eliminate. Bank of the release liquidity will appear this kind of situation, this is money chase interest rate of the quality of the decision. Generally speaking, the money is the most to the benefit, to the most able to "sided etc money lays money" direction, but has proved that such flow not only cannot help to the real economy healthy operation, but due to the virtual economy fuelled by a bubble economy excessive flood, leading to an extremely unstable macro economy of the state. Therefore, when now need to monetary policy appropriate relax, releasing the money to flow to where is a must be prudent treatment question. From the current policy guidance to see, because of small and medium-sized enterprises before the first feel a tight monetary policy period to the negative effects, so the central bank is very hope this liquidity can flow to small and medium-sized enterprise and even more small micro enterprise, but, because of small and medium-sized enterprise, small micro enterprise's ability to resist risk more bad,NBA Hats so the commercial Banks to lend to the always did very cautious, standing in the point of view of commercial bank that this attitude is understandable, but, if monetary policy to this lack of early warning, so, in commercial Banks can control more credit currency, these funds could flow to the policy guidance and not consistent with the direction, leading to price out again, and promote the CPI rebounded. In addition, we must pay attention to such a phenomenon, in the drop allowed before the stock market many people have been advocating drop accurate, this gives investors caused a delusion, seems to drop must is in order to promote the stock market rise, this and the market management department's requirements also highly fit. The central bank must of course not to stock market drop, don't even may have this consideration, however, when the market thinking form a powerful force of public opinion, it to monetary policy interference also can't neglect. Central Banks can through the drop to market liquidity must input, but impossible to specific instructions to commercial bank of each a credit to any place. At present, China's economy is facing the biggest problem is that the economic downturn and the rising prices of the double pressure, the former need to monetary policy to relax, but the latter but need to continue tightening monetary policy. For several years, the central bank frequent use of deposit reserve rate the monetary policy tools, but to in this policy adjustment that might appear under all kinds of situations but lack the means to mature. So, for the drop of political economy can actually allowed to have what kind of effect, still need to better monitor the central bank, the real guarantee 400 billion yuan to release liquidity things out of use. 
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