su ning : pilot bank card service in guizhou province speech by mr su ning, deputy governor of the peoplea€™s bank of china, at the inauguration of pilot bank card service tailored for rural migrant workers in guizhou province, guiyang, 29 december 2005. * * * distinguished guests, comrades, migrant farmer friends, this ceremony marks the launching of pilot bank card service in guizhou tailored for migrant workers from the countryside. this service, after its inauguration, enables migrant workers to deposit cash on china union - pay bank cards in the place where they work and withdraw money from the rural credit cooperative service network at their home town. this pilot project provides service to migrant workers and is made possible by joint efforts of the people's bank of china and other relevant parties as a concrete measure to implement the scientific development approach, facilitate coordinated development of rural and urban china, properly solve problems associated with the development of rural economy, and build a well - off society ; it is an important step to improve the clearing and settlement environment in rural areas, expand the bank card service system, diversify fund remittance methods for migrant workers, and enhance the financial services in rural areas. i would like to congratulate, on behalf of the people's bank of china ( pbc ), on the opening of this service in guizhou, and express our sincere thanks to the industrial and commercial bank of china ( icbc ), agricultural bank of china, china union - pay and guizhou rural credit cooperatives who have completed operational and technical preparation for the project, and to the pbc guiyang sub - branch who has organized the project's implementation. our thanks also go to everyone who has worked hard for it. the state council has attached great importance to rural economy and formulated a series of strategic plans to solve problems associated with the development of rural economy. the 11th 5 - year plan adopted at the 5th plenum of the 16th cpc central committee put forward strategic ideas, objectives and plans to build a socialist new countryside. the pbc has always regarded rural financial service as a high priority. in response to the call by the state council, the pbc has taken active measures to support structural reform of the rural credit cooperative system, including formulating and implementing a plan to provide financial support for the reform. in addition, a number of steps have been taken to diversify clearing and settlement modes for rural credit cooperatives and boost their payment capacity. the large -

economic environment and policy effects. we have implemented a sound monetary policy, and have properly adjusted it based on our " sound intuitions ". historically speaking, this " intuition " is our experience ; from a timeline perspective, it is the average of different cycles in the past ; and from an international perspective, it is the average among various regions. these dimensions of 1 / 5 bis - central bankers'speeches intuition form a good basis for formulating forward - looking policies as they forecast the situation after a cycle. therefore, we formulate sound monetary policies based on china's national conditions, with the average inter - temporal and inter - regional values incorporated in the design from the timeline and international perspectives. in terms of aggregates, we have released the " frozen " liquidity mainly by lowering the required reserve ratio ( rrr ), which increases the money multiplier, thus achieving reasonable growth of money and credit while keeping our central bank balance sheet basically stable. over the past five years, the pboc's balance sheet expanded only around 3 percent each year. over the same period, china's broad money supply ( m2 ) and aggregate financing to the real economy ( afre ) have grown at an average annual rate of around 10 percent, basically in line with the average annual growth rate of nominal gdp, which stood at nearly 8 percent. in terms of interest rates, we have likewise remained prudent and refrained from going to extremes, thereby keeping the fluctuations of policy interest rates within a relatively small range. for example, in 2018, amid the successive rate hikes of the major central banks, the pboc's open market operations ( omos ) rates remained stable after an uptick of only 5 basis points at the beginning of the year. in 2020, in response to the covid - 19 pandemic, some major central banks slashed interest rates to almost zero, but the pboc kept the omo rates stable after a cut of 20 basis points, and the market rates remained at an appropriate level accordingly. since 2022, in contrast to a series of aggressive interest rate hikes of the major central banks in the world, we have lowered the rates to some extent instead of raising them. the omo rates were lowered by 20 basis points, and the market interest rates remained stable with a slight decline. the interest rate is an important price of production factors and it directly influences consumption, investment, balance of payments, etc. it will not