How to determine the direction of monetary policy? Response from authoritative experts

"In recent years, China has further shifted towards a price-based monetary policy control framework, with open market operations serving more towards interest rate control targets, which should not be overly concerned about in the future," authoritative experts told China Securities Journal reporters on March 13. The experts mentioned above said that from the perspective of the money market operation, since the beginning of this year, the overnight fund rate has been running at a low level, with an average of about 1.33%, 7 basis points lower than the central bank's policy rate, and the monetary and financial environment is relatively loose. The experts also stated that the scale of open market operations is influenced not only by the monetary policy stance, but also by fiscal revenues and expenditures, tax payments by residents, and seasonal factors such as withdrawals during holidays. It is not advisable to simply judge whether the monetary policy is shifting by changes in the quantity of open market operations, especially a specific type of open market operation.