China-Singapore Jingwei Client, March 4th (Song Yafen) On the evening of March 3rd, Beijing time, following the RBA's announcement of a 25 basis point rate cut, the Fed announced a 50 basis point cut in the federal benchmark rate.

The Fed said that the fundamentals of the US economy remain strong. However, new coronaviruses pose evolving risks to economic activity. The Fed is closely monitoring developments and their impact on the economic outlook, and will use its tools to take action to support the economy as appropriate. Affected by this, U.S. stocks surged in the short-term, with the Dow and S & P 500 rising nearly 1% and the Nasdaq up 0.6%.

What impact will the Fed's interest rate cuts have on the macro and market levels in the US and China markets?

Regarding this, the deputy director of CITIC Securities Research Institute Ming Ming said in an interview with the client of Zhongxin Jingwei: "From a macroeconomic perspective, it must be a bullish one. Lowering interest rates can reduce financing costs and help the investment of the real economy. And consumption. But in the end, how big the benefit is, there is still a lot of uncertainty, and other policies may be needed. For example, under the background of monetary easing, can we launch a larger-scale fiscal policy. "

According to a clear introduction, global monetary policy has remained accommodative in recent years, but the effects of monetary easing have gradually declined, including the long-term implementation of negative interest rates in Japan and Europe has not brought about economic recovery.

Tan Yaling, an independent economist at the China Foreign Exchange Investment Research Institute, believes that the Fed's interest rate cut will bring some pressure on China's macroeconomic policies. "China and the United States have their own advantages. Some people may think that we should cut interest rates, but China is unlikely to follow."

"The Fed ’s rate cut is a reduced benchmark rate, and China does not have a benchmark rate. Only the loan market rate and the deposit benchmark rate, but these two rates are very unlikely to move. The strength of the deposit rate is limited, and the loan rate is ongoing The exploration of LPR, if interest rates move too much, will have an impact on the formation of the mechanism. "

From the perspective of the capital market, Yang Delong, the managing director of Qianhai Open Source Fund, believes that the Fed cuts interest rates and US stocks are expected to rebound in the short term, but record highs are more difficult, and the risk of US stocks peaking is still great.

Obviously, the US interest rate cut and the weakening of the US dollar are an improvement on global liquidity, which is definitely a positive for the capital market, especially for China's capital market. "The scale of foreign capital inflows in these years is still relatively large, including the stock market and the bond market. If the Fed further cuts interest rates, global liquidity will be further relaxed, which should be a relatively clear benefit for the domestic capital market." (Zhongxin Jingwei APP)

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