Chinanews client, Beijing, July 15th (Reporter Li Jinlei) For the first time this year, the overall RRR cut was implemented today.
On July 9, the People's Bank of China decided to lower the deposit reserve ratio of financial institutions by 0.5 percentage points on July 15, 2021 (excluding financial institutions that have implemented a 5% deposit reserve ratio).
The RRR cut is a comprehensive reduction. Except for some county-level legal person financial institutions that have implemented a 5% deposit reserve ratio, the deposit reserve ratio for other financial institutions is generally reduced by 0.5 percentage points, and the RRR cut releases about 1 trillion yuan in long-term funds. .
Data map of the People's Bank of China.
Photo by Li Huisi issued by China News Agency
Better support the real economy
On July 13, Sun Guofeng, Director of the Monetary Policy Department of the People's Bank of China, responded at the press conference of the State Council Information Office that the RRR cut was mainly to optimize the capital structure of financial institutions, improve financial service capabilities, and better support the real economy.
The Economic Situation Experts and Entrepreneurs Symposium held on July 12 pointed out that proactive fiscal policies and prudent monetary policies should continue to focus on supporting the real economy and promoting employment. The recent RRR cuts should be structural, and more attention should be paid to supporting small and medium-sized enterprises. Micro-enterprises and labor-intensive industries help ease financing difficulties.
Since the beginning of this year, the prices of some bulk commodities have continued to rise, and some small and micro enterprises are facing operating difficulties such as rising costs.
And this 1 trillion yuan of real money is more of a timely rain for small, medium and micro enterprises.
Dong Ximiao, chief researcher of China Merchants Finance, told reporters from Chinanews.com that the RRR cut will provide banks with long-term, stable and low-cost funds, which will increase the liquidity of the banking system while reducing bank funding costs, which will help improve banking services for small, medium and micro enterprises and individuals. Willingness and ability of industrial and commercial households.
The central bank stated that the RRR cut has effectively increased the long-term stable funding sources for financial institutions to support the real economy, and guided financial institutions to actively use the RRR cut funds to increase support for small and micro enterprises.
Reduce the capital cost of financial institutions by about 13 billion yuan per year, and transmission through financial institutions can promote the reduction of social comprehensive financing costs.
Data Map: Shareholders in the trading floor of a securities company.
Photo by China News Agency reporter Liu Zhongjun
Capital market indirect benefit
Although the purpose of the RRR cut is not to stimulate the stock market, in the opinion of experts, for the stock market, the RRR cut sends a signal to maintain a reasonable and sufficient liquidity, which helps stabilize market expectations and confidence, and is conducive to the healthy and sustainable development of the stock market.
Sure enough, under the positive influence of the news of the RRR cut, on July 12, the A-share market set off a strong rise. The ChiNext Index rose 3.68% to 3,534.76 points that day, a 6-year high.
On July 13, the GEM index surpassed the Shanghai Composite Index for the first time.
Data map: Bank staff count currency.
Photo by China News Agency reporter Zhang Yun
Will there be RRR cuts or even interest rate cuts in the future?
On the basis of this comprehensive RRR cut, is there any need for further RRR cuts or even interest rate cuts in the future?
In response to this issue, Sun Guofeng said that the RRR cut is a regular liquidity operation after the return of monetary policy to normal, and the orientation of prudent monetary policy has not changed.
When the central bank released the news of the RRR cut, the central bank also emphasized that the RRR cut is a routine operation after the return of monetary policy to normal. A part of the funds released will be used by financial institutions to return expired medium-term lending facilities (MLF), and some funds will be used by financial institutions. Financial institutions are used to make up for the liquidity gap caused by the peak of the tax period in mid-to-late July, increase the proportion of long-term funds of financial institutions, and the total liquidity of the banking system will remain basically stable.
Wen Bin, chief researcher of China Minsheng Bank, believes that at present, the global commodity price rise has slowed down. Coupled with the regulation of a series of domestic supply and price stabilization policies, the rise of commodities has been basically controlled, and the PPI has reached its peak this year. .
With the gradual rise of the base, the PPI is expected to maintain a trend of volatility and decline in the second half of the year, but the rise in international oil prices still brings uncertainty to imported inflation.
Subject to the fall in the price of pork and other foods, the CPI is likely to maintain a moderate growth trend during the year, the inflation level is generally controllable, and the overall impact on monetary policy is limited.
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