China's monetary and fiscal policy
Reverse repurchase: the central bank announced that in order to maintain the reasonable and abundant liquidity of the banking system, a 7-day reverse repurchase operation of 10 billion yuan was carried out by means of interest rate bidding on April 19, with a bid winning interest rate of 2.10%. On the same day, 20 billion yuan of reverse repurchase expired, so 10 billion yuan was returned on the same day. (issued by the central bank)
Monetary policy: according to the central bank, since the beginning of this year, the people's Bank of China has increased its liquidity investment. In order to support the accelerated implementation of small and micro enterprises' retention tax rebate, the people's Bank of China has stepped up its efforts to hand over the balance profits to the central government. As of mid April, 600 billion yuan has been handed over, mainly for retention tax rebate and transfer payment to local governments, which is equivalent to 600 billion yuan of base currency, which is basically equivalent to the overall reduction of reserve requirement by 0.25 percentage points. (issued by the central bank)
Overseas monetary and fiscal policy
[Indonesia] the Bank of Indonesia kept the 7-day reverse repo rate unchanged at 3.5%, in line with market expectations.
[fed] fed Brad said that the Fed's credibility is being tested; If the Fed does not act quickly, inflation expectations may get out of control. The Fed needs to raise interest rates "quickly" to neutral interest rates; FOMC is expected to decide to start to shrink the table at the next monetary policy meeting; At any meeting, the basic situation is that interest rates will not be increased by more than 50 basis points; According to Taylor's rule, the neutral interest rate should reach at least 3.50%; It is impossible to reach this level all at once, but it should be completed before the end of the year.
[Australia] according to the minutes of the RBA meeting, the Australian economy has a strong performance in the labor market, and the growth prospects for this year and next year are still optimistic. We have noted important signs in terms of CPI and wages in the coming months. Inflation pressure has increased, but it is still lower than that in many other countries. The uncertainty of labor cost under low unemployment rate still exists, and the core inflation rate is expected to exceed 3% in the first quarter; Members agreed that Australia's financial conditions remained highly relaxed and that rising food and fuel prices would push up inflation in the coming quarters.
[Poland] wnorowski, an official of Poland's central bank, said that Poland's main interest rate may rise to 7.5%, and Poland's inflation rate will not return below 3.5% until 2024.
Risk tip: the epidemic spreads beyond expectations, overseas tightens beyond expectations, and global inflation intensifies
