China-Singapore Jingwei Client, August 24th, the central bank announced on the 24th that in order to maintain a reasonable and sufficient liquidity in the banking system, the central bank conducted a reverse repurchase operation of 160 billion yuan on August 24 through an interest rate bidding method, with a 7-day 14-day period The winning bid rate for reverse repurchase operations remains unchanged.
Screenshot of central bank announcement
According to Wind data, this week (August 24 to August 30), the central bank's open market has a total of 610 billion yuan of reverse repurchase and 150 billion yuan of medium-term loan facilities (MLF) due. Among them, the reverse repurchase maturity scales from Monday to Friday are 50 billion, 100 billion, 150 billion, 160 billion, and 150 billion, respectively, and 150 billion MLF expires on Wednesday.
A total of 550 billion yuan of MLF expires in August, of which 400 billion yuan will expire on August 15 and 150 billion yuan will expire on August 26.
According to the analysis of the Sichuan Finance Securities Research Report, the cash demand of the banking system tends to increase seasonally in August, and the market funding gap is relatively large.
According to the Industrial Securities Research Report, from the central bank’s public market transaction announcements, the probability of mentioning fiscal expenditures to supplement liquidity at the end of the month is also relatively high, and the probability of the central bank maintaining the empty window period at the end of the reverse repo operation is also high at the end of last month. However, since the funds at the end of the month and at the end of the quarter may be affected by factors such as the assessment of commercial banks, performance may vary in different months and under the total liquidity environment. Therefore, the central bank implements different operations according to specific conditions.
What needs to be mentioned is that as of August 20, the loan market quoted interest rate (LPR) has been "standstill" for four consecutive months.
Wen Bin, chief researcher of China Minsheng Bank, said that the LPR quotation has not dropped and is basically in line with market expectations. The reason is that when the central bank recently launched reverse repurchase and MLF operations, the policy interest rate has remained stable, and the market interest rate center has gradually risen to near the policy interest rate. According to past experience, the policy interest rate of reverse repurchase, especially MLF, remains unchanged, and the LPR quotation of the current month is likely to remain stable. The recent rise in the capital interest rate center and the upward marginal cost of banks indicates that the LPR quotation this month will remain unchanged.
Wen Bin believes that the central bank's monetary policy operations have been significantly more cautious in the near future, and have not further used operations such as RRR cuts and interest rate cuts, but mainly used open market operations and MLF to adjust liquidity. It is expected that in the second half of the year, monetary policy operations will shift to more normalization, mainly through structural easing, and targeted support for weak links in the real economy such as manufacturing and small, medium and micro enterprises. (Zhongxin Jingwei APP)