Summary
[CITIC Securities: The LPR interest rate in April or May may be adjusted accordingly]The CITIC Securities Research Report pointed out that the central bank announced a comprehensive 25BPS reduction in reserve requirements, releasing 530 billion yuan of long-term funds. The RRR cut was slightly lower than market expectations, probably because the current market liquidity is relatively abundant and the MLF expiry volume is small. In addition, the media reported that the deposit interest rate self-discipline mechanism encourages small and medium-sized banks to lower the floating ceiling of deposit interest rates by 10BPS, which can also reduce the cost of bank liabilities, but the impact may be weaker than the deposit reform in 2021. In the follow-up, we believe that the LPR interest rate in April or May may be adjusted accordingly.
CITIC SecuritiesResearch reportIt is pointed out that the central bank announced a comprehensive 25BPS reduction in the reserve ratio, releasing 530 billion yuan of long-term funds. The RRR cut was slightly lower than market expectations, probably because the current market liquidity is relatively abundant and the MLF expiry volume is small.In addition, the media reported depositsinterest rateSelf-discipline mechanism encourages small and medium-sizedbankdepositinterest rateThe floating upper limit is lowered by 10BPS, which can also reduce thebankThe effect of debt cost, but the impact may be weaker than the deposit reform in 2021. In the follow-up, we believe that the LPR interest rate in April or May may be adjusted accordingly.
(Article source: Financial Associated Press)