Sino-Singapore Jingwei Client, March 3, the central bank announced on the 3rd that the central bank has launched a 7-day reverse repurchase operation of 10 billion yuan in the open market. Today, the 10 billion yuan reverse repurchase expires, which completely hedges the maturity.

　　In terms of funding, inter-bank funding was loose on March 2, and the overnight repo weighted interest rate fell by more than 36bp to below 2%. At the current price level, supply and demand have temporarily reached equilibrium.

　　Guo Shuqing, Chairman of the China Banking and Insurance Regulatory Commission, said at a press conference of the State Council Information Office on March 2 that the interest rate of the entire market is picking up this year. It is estimated that the interest rate of our loans will also pick up, but in general, the interest rate is still relatively low.

It is understood that Guo Shuqing mentioned that loan interest rates will rise, mainly referring to the withdrawal of some policies such as the financial discount on loans in the early period, rather than verbal interest rate hikes.

　　In addition, Guo Shuqing also mentioned that the high level of financial markets in developed countries in Europe and the United States runs counter to the real economy.

The financial market should reflect the status of the real economy. If it is too different from the real economy, problems will arise, and sooner or later it will be forced to adjust. Therefore, I am very worried that the financial market, especially the foreign financial asset bubble, will burst.

　　According to China Securities Journal, entering March, the trend of liquidity easing has not changed, and market interest rates have stabilized and declined.

Analysts said that it is expected that funds will continue to be stable in March.

The targeted RRR cut may land in due course, but the funds released are expected to be relatively limited.

　　In recent years, the central bank has generally increased its open market operations in the quarter to prevent large fluctuations in liquidity. This "convention" is expected to continue this year.

In addition, fiscal expenditures at the end of the quarter are relatively strong, which is expected to hedge the impact of regulatory assessment factors to a certain extent.

　　The chief fixed-income analyst at CITIC Securities clearly believes that the central bank's monetary policy will focus on stability.

The central bank is not expected to cause large fluctuations in the price of inter-bank funds.

Recently the central bank forwarded an article in the Financial Times that at present, the central bank should not pay too much attention to the number of central bank operations, otherwise it may misunderstand the monetary policy orientation. The focus should be on the central bank’s open market operating interest rate, MLF interest rate and other policy interest rate indicators, as well as market benchmarks. The operation of interest rates over a period of time.

At present, DR007 has basically fallen to the vicinity of the central bank’s agreed policy interest rate, and the interbank certificate of deposit interest rate has generally fluctuated around the MLF interest rate. Therefore, the monetary policy will remain stable in the short term.

　　Obviously pointed out that the current level of inflation in my country is still at a low level, and monetary policy is gradually returning to normal.

Therefore, on the whole, it is expected that the fermentation of inflation expectations will have less impact on domestic monetary policy.

Due to the relatively moderate pace of government bond supply, inflationary factors temporarily do not constitute a restriction, and the central bank's emphasis on the stability of interbank interest rates,

and since the open market maturity in March is only 180 billion yuan, hedging pressure is small.

It is expected that the central bank's operations will remain neutral, with a steady rhythm.

　　From the perspective of liquidity, he clearly stated that from the perspective of the central bank’s recent monetary policy tools operation attitude, the central bank intends to maintain the stability of inter-bank funds. At the same time, we believe that

subsequent structural inflation pulses will not restrict monetary policy. The policy will still maintain the main tone of stability.

From the perspective of the main factors affecting inter-bank liquidity, fiscal factors and the return of cash will have a positive effect on inter-bank liquidity. It is expected that in March, the fund will still show a neutral and broad overall trend.

(Zhongxin Jingwei APP)