To enhance the effectiveness of the policies, monetary policy is supported by strengthening the monetary operations strategy and exchange rate policy, as well as financial market deepening. In regards to monetary operations strategy, we view that the flexibility in the liquidity management for banks will enhance the bank’s ability to absorb temporary liquidity shock thereby avoiding excess interest rate fluctuations.
It is important that everyone, at home and abroad, recognizes that this is a sum that is not a game-changer in terms of the public finances. It represents about one year’s borrowing requirement at current rates. It is not destabilizing.