Home » The central bank has a net investment of 430 billion yuan in institutions a week: do not rule out the possibility of cutting RRR and interest rates – yqqlm

The central bank has a net investment of 430 billion yuan in institutions a week: do not rule out the possibility of cutting RRR and interest rates – yqqlm

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The central bank has a net investment of 430 billion yuan in institutions a week: do not rule out the possibility of cutting RRR and interest rates – yqqlm

Original title: The central bank invested a net 430 billion yuan a week in institutions: do not rule out the possibility of reducing the reserve ratio and interest rates

Sino-Singapore Jingwei, April 2. On the 2nd, the central bank announced that in order to maintain reasonable and sufficient liquidity in the banking system, on April 2nd, a 7-day reverse repurchase operation of 10 billion yuan was carried out by way of interest rate bidding, and the winning rate was 2.10%. Wind data shows that no reverse repurchase expired on the same day, and a net investment of 10 billion yuan was realized.

Yesterday (1st) the central bank launched a 7-day reverse repurchase operation of 10 billion yuan. This week, the central bank’s open market has carried out a total of 620 billion yuan of reverse repurchase operations, and a total of 190 billion yuan of reverse repurchase has expired. Therefore, this week, the central bank’s open market has a net investment of 430 billion yuan.

It is worth noting that the central bank has carried out 100 billion-level reverse repurchase operations for five consecutive trading days. From March 25 to 31, the scale of the central bank’s reverse repurchase operations was 100 billion yuan, 150 billion yuan, 150 billion yuan, 150 billion yuan and 150 billion yuan, after hedging the due amount, both achieved net investment.

Wang Youxin, a senior researcher at the Bank of China Research Institute, said that the global economic growth has slowed recently, the equity market and commodity market have increased volatility, and liquidity in some areas has tightened. Although my country’s economic data from January to February performed well, economic growth is not yet solid. The National Standing Committee held on March 21 emphasized “increasing support for the real economy by a prudent monetary policy”. At this time, an appropriate increase in liquidity provision is conducive to stabilizing financing costs and strengthening support for the real economy.

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The Mingming bond research team of CITIC Securities believes that the central bank slightly exceeded the MLF in March, and from the perspective of reverse repurchase, monetary policy still protects inter-bank liquidity. In the last week of March, the funds were affected by factors such as tax payment, standard payment, and the end of the month, and the interest rate of funds across the quarter rose significantly. In response, the central bank increased the scale of reverse repurchase operations, showing its determination to maintain the stability of funds.After entering April, the central bank will continue to maintain reasonably sufficient liquidity.

Institutions generally believe that the possibility of a RRR cut in April will increase.

Mingming’s team said that according to calculations, there was a funding gap of about 300 billion yuan in April, and the interest rate spread between the interbank deposit certificate and MLF has returned to the level before the announcement of the RRR cut on December 6, 2021. These factors may become the RRR cut. trigger factor.

Guotai Junan Research Report pointed out that considering the liquidity pressure in April and the domestic and foreign economic situation, the rate cut in the second quarter is still expected. From the perspective of RRR reduction space, there is still 50-100BP room for RRR reduction, and there is a high probability that it will still be divided into two times. From the point of view of the form of interest rate cut, firstly, it can compress the LPR and terminal enterprise loan interest rates, and the increase of residential mortgage interest rates; secondly, there is still room for about 20BP to reduce the MLF interest rate.

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Shen Xinfeng, an analyst at Northeast Securities, pointed out that from the perspective of domestic economic fundamentals, the RRR cut is necessary to stabilize market expectations, consolidate the preliminary results of previous credit easing, and hedge the impact of the epidemic on the real economy. (Sino-Singapore Jingwei APP)Return to Sohu, see more

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Statement: The opinions of this article only represent the author himself, Sohu is an information publishing platform, and Sohu only provides information storage space services.

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