After the Chinese Spring Festival had just passed, the NPC and CPPC were held as scheduled. Topics about macro adjustment policies turned back again to people’s vision and have become the “importance of importance” as focus of the whole society. On February 11th, the National Bureau of Statistics published some data of January at the moment of the coming of the Chinese Spring festival. Among the data, the two most sensitive data which had attracted the attention from the market were published at the same time. CPI increased 1.5% comparing with the same period of previous year, lower than the market’s estimation before. The new adding loan was 1.39 trillion yuan, 224.3 billion yuan less than the same period of previous years. Well, the unscrambling to these two data from the market is: under the background that these two sensitive data were better than the market estimation, PBC recently continued to carry out the contraction adjustment policy, it is even possible to reduce the pressure of adding interest. However, PBC still declared in the next evening that dated from February 25th all the deposit finance institutes should adjust up 0.5 percent of the RMB deposit reserve ratio, except of the rural credit cooperative small sized finance institutes. It is the second time for PBC to adjust up the deposit reserve ration in the same month. PBC’s adjusting controlling action seems to give a signal of contraction expectation to the market more and more urgent. However, professionals of PBC said that PBC’s adjusting up the deposit reserve ratio was a neutral tool to a certain extent, this action was aiming at the unstinted fluidity, it was not the symbol of tightening the currency policy, the suitable loose currency policy had not changed. And, view from the supply of capital, the new adding loan in January this year still kept a certain scale, the fluidity in the market was ample.

Of course, from the choosing of the time, PBC’s action this time aimed at the Chinese Spring Festival at a certain great degree. It is reported that in order to ensure the ample fluidity during the Chinese Spring Festival, recently, the central bank has continuously opened the gate in the public market to pour in money. For four weeks, the total net market throw in currency was near 700 billion yuan. After the Chinese Spring Festival, from February 19th to the end of March, the accumulative total of the central banks notes in public market and the sell repo at term will be near 900 billion yuan. Plus the net market throw in during the Chinese Spring Festival, the liquidity of the total withdrawal of currency from circulation in February and March will be about 1.6 trillion yuan for the central bank to coop back. The pressure of cooping back currency is as difficult as at the beginning of the New Year. Because the Chinese Spring Festival is the consumption peak, the continuous supply of currency should definitely make the prices increase, this is also the substantially reason to adjust up the deposit reserve ratio. Therefore, the central bank adjusted up again the deposit reserve ratio to suitably shrink the fluidity, to relive the over unstinted currency environment to deal with the pressure of increasing prices, to descend to market expected inflation. By this token, adjusting up the deposit ration should not be over understood as the trend turning of currency policy. This action also shows the enforcement of flexibility of the central bank’s using the financial tools to control the market.