Second half of monetary policy or fine-tuning

ANZ has released a new study that says the central bank needs to adjust its benchmark interest rate to ensure that real interest rates are gradually regularized. "The key words of the second half of the economy are no longer ' growth ', but ' sustainability '.　　"ANZ China Economic research director Ligang said.　　By contrast, the 9.5% growth rate is not only conducive to macro-economy in the "Fast and good" run, but also gives policymakers more room to think about the next step in China's economy. An even more serious problem in sustainable development is the pressure on asset prices to rise in real negative interest rates, according to the ANZ Research report.　　Another risk associated with real negative interest rates is inflation.　　At the same time, it is noteworthy that the recent price of garlic and mung bean after a short period of stabilization, again a significant increase, indicating that the market hot money is still looking for the release of the field.　　Ligang that in the second half of the monetary policy, the PBOC needs to make a certain degree of adjustment to the tools in hand.　　The first important adjustment is to address real negative interest rates, and the second important adjustment is the need to curb demand to ensure that inflation and inflationary expectations do not get out of hand. "Of course, the adjustment of interest rates may have two kinds of situations, one is to raise the deposit rate only, and keep the loan interest rate stable, so that the real negative interest rate can be solved at least, the other is a regular increase in deposit and loan interest rates." Unilateral adjustment, though somewhat perverse, is the best choice for a suboptimal one when the macro-economy faces more uncertainty.　　Hao, China economist at ANZ Bank. (Source: China certificate network)