Bank of China Chairman Xiao: Monetary policy is actually shrinking

"Although the central bank's commitment to continue to implement loose monetary policy has not changed verbally, it is actually shrinking," the report said.　　Xiao, chairman of Bank of China, said in a recent interview with Caijing magazine. Xiao For example, the central bank withdrew some liquidity from the issuance of central bank bills in April. "If you take into account the fact that C pi is negative, the current rate level is still at a relatively high level, but the central bank has no signs of adjustment." "It all means that although the policies have not changed, they are actually moving in a more prudent direction," Xiao said. He admits that more than 5 trillion of new loans are not fully in the real economy, and that banks, with their historical experience and instinct to deal with regulation by setting aside their size, also believe there is a certainty. He said that if properly regulated, credit would grow steadily in the coming period, but credit volume and stimulus plans in this particular context are far from normal.　　Lending should fall back next year. As the future policy direction still largely determines the behavior of banks and enterprises, Xiao said that the adjustment of objective policy "should not only consider the economic operating conditions and trends, but also the timely management of social psychological expectations." "The better case is to keep bank loans growing steadily and to avoid the ups and downs of loans," he said.　　Before joining the bank, Xiao worked in the central banking system for nearly 15 years, and served as vice president of various departments in charge of monetary policy, foreign exchange trading and planning funds. In addition, Xiao reiterated that it would not be privately held in Hong Kong, "BOC will increase its holdings in Hong Kong when the time is right, but its shareholding does not affect the listing status of BOC Hong Kong." Xiao said the increase would help to share the future profits of BOC Hong Kong, but it would not privatize its special position as a note-issuing bank.