National Information Center: Interest rate reserve ratio should not be adjusted sharply

The National Information Center 10th in the China Securities newspaper exclusive report that the current monetary policy should continue to maintain a moderately relaxed situation, but the interest rate and reserve ratio should not be significantly adjusted.　　At the same time, monetary policy needs to respond in advance to potential stagflation risks. The report believes that the trend of energy raw materials prices, the future of China may appear CPI before GDP rebound to the long-term average level.　　It is expected that from the third quarter of this year, the trend from deflation to inflation will accelerate. The report said that current interest rates and deposit reserve ratios should not be significantly adjusted, should be stabilized in a suitable interval. Interest rate cuts are not the first choice for central bank monetary policy instruments, and are more effective than interest rate cuts through open market operations and fine-tuning the monetary policy. At the same time, the central bank needs to expand the issue and stabilize the reserve ratio to hedge the rapid growth of foreign exchange accounts. (Han Xiaodong)