Macroeconomic policies likely to return to normal

　　 ContainersaretransportedataportinQingdao,EastChinasShandongprovince,onJan12,2021.[Photo/IC]Editorsnote:ChinaDailyispublishingaseriesofstoriesfocusingonmajorissuesexpectedtobediscussedattheannualsessionsoftheNationalPeoplesCongressandtheNationalCommitteeoftheChinesePeoplesPoliticalConsultativeConference,knownasthetwosessions,thebiggestannualpoliticaleventinChina,,deputiesandpoliticaladvisers,"policynormalization",buttheyunanimouslyexpectedthewithdrningofthetwosessions－theannualmeetofpoliciescoveringthecountrysoveralldevelopmentandpeople,includingfiscalandmonetarymeasures,havecontributedtoarapid,ustaininggrowthwhilepreventingrisks,cethisyear,beforeturningtoconsolidationoncetherecoveryiscomplete,inordertosmooththetransitionfromthestrongsupportrolledoutlastyear."Weexpect(thegovernments)fiscalconditionstoimprovethisyear,wi2020,"saidLuTing,,Beijingwilllikelyloweritsofficialtargetforthefiscaldeficitfrom""in2020toaround3percentin2021andreducethequotaofnetlocalgovernmentspecialbondfinancingto3trillionyuan($),onds,adebtinstrumentof1trillionyuancreatedlastyearforanti-pandemicfinancing,splannedfiscalbudgetsandtheannualbondquotas－forbothlocalgovernmentgeneralbudgetarybondsandoff-budgetspecialbonds－willbedisclosedattheopeningofthefourthsessionofthe13thNationalPeoplesCongress,ionofthe13thNPCinMay2020,includingspecialtransfersoffiscalfundsfromthecentralgoveest,thegovernment,,,FinanceMinisterLiuKundiscussedtheideaofsettingthefiscaldeficitratioandthescaleoflocalgovernmentspecialbonds"atreasonablelevels",whichwouldguaranteeacertainlevelofs,chiefeconomistforChinaandNorthAsiaatStandardCharteredfinancialservicescompanyinHongKong,saidhecalculatedthatChina,,Dingsaid,madethecentral,bothatcentralandlocallevels,arelikelytobeloweredtoaround5trillionyuanthisyear,,inordertocontroltheoverallgovernmentdebtlevel,,,thefastestexpansionsincethefirstreportoftheleverageratio,accordingtoresearchfromtheNationalInstitutionforFinanceandDevelopment,an,expertsfromtheInternationalMonetaryFundsuggestedthatChinapaymoreattentiontothealreadylargeandgrowingfundinggapsbetweenlocalgovernmentsrevenuesandexpenditures,whichcanbebridgedthroughtransfersfromthecentralgovernmentandotherfinancingsources."Continuedpolicysupportisneededtosecuretherecovery,withthepolicymixcalibratedtostrengthenprivatedemandandaddressfinancialvulnerabilities,"sfiscalpolicytoremain"broadlyneutral"whilemonetarypolicyremains"supportive"in2021,－allfinancingsourcesfortherealeconomy－sBankofChina,thecentralbank,saidinitslatestquarterlymonetarypolicyreportthatthereshouldbemorefocusonmonitoringpolicyrates,,asignalthatthePBOCismaintaininganeutralstanceformonetarypolicy,neitherloosenortight,,thePBOCreportedthebenchmarklendingrate,theone-yearloanprimerate,,,theLPRislikelytostayatthecurrentlevel,andthePBOCwillprefertousepolicytoolssuchasopenmarketoperations,medium-termlendingfacility,relendingandrediscounttomaintainmarketliquidityatabalancedlevel,saidMingMing,sLupredictedneitherhikesnorcutstopolicyratesandthereserverequirementratio,theamountofcashthatfinancialinstitutionsmustholdinreserveinthecentralbank,tabasketofmajorcurrencies.。