Sino-Singapore Jingwei, January 21st. The central bank’s website announced on the 21st that in order to maintain a reasonable and sufficient liquidity in the banking system, the People’s Bank of China launched a 100 billion yuan reverse repurchase operation on January 21, 2022 through interest rate bidding.

Wind data shows that 10 billion yuan of reverse repurchase expired today, so a net investment of 90 billion yuan on that day, this week (January 17-January 21), the central bank's open market full-scale net investment of 650 billion yuan.

　　Screenshot of the central bank website

　　According to the previous announcement of the central bank, this is the fifth consecutive working day that the central bank has carried out a reverse repurchase operation with a scale of 100 billion yuan.

After entering 2022, the central bank first carried out a reverse repurchase operation of 10 billion yuan for 9 consecutive working days. After entering this week, the central bank restarted a 7-day period of 100 billion yuan of reverse repurchase, and launched a 1-year period of 700 billion yuan on Monday. Yuan Medium-Term Lending Facility (MLF) operation.

　　In terms of interest rates, the winning rate for the 700 billion yuan MLF bid is 2.85%, and the winning rate for the 100 billion yuan reverse repurchase bid is 2.10%.

Sino-Singapore Jingwei noticed that before January 17, the 7-day reverse repurchase operation rate was lowered to 2.2% on March 30, 2020 and remained unchanged, and the MLF operation rate was lowered from April 2020 to 2.95%. constant.

　　Screenshot of Wind

　　Wind data shows that this week, the central bank's open market has 50 billion yuan of reverse repurchase and 500 billion yuan of MLF due, and the central bank's open market has a net investment of 650 billion yuan this week.

　　In terms of market capital, the short-end Shibor varieties were mixed on Thursday.

Overnight varieties were unchanged at 2.035% in the previous day, down 1.4bp in the 7-day period and reported 2.113%, in the 14-day period up by 2.6bp and reported 2.431%, and in the 1-month period down by 0.4bp and reported 2.418%.

　　In addition, the loan market quoted rate (LPR) released on January 20 "doubled down".

The 1-year LPR was cut by 10 basis points from the previous month's quotation; the 5-year and above varieties were reduced from 4.65% to 4.6%, which remained unchanged for 20 consecutive months.

　　On the 18th, the central bank stated that it would "open the monetary policy toolbox a little bigger" and proposed that "the plan of the year lies in the spring, so we must hurry up and operate forward-looking."

　　Regarding the future direction of monetary policy, Wen Bin, chief researcher of China Minsheng Bank, analyzed that in the next stage, macro policy will continue to focus on the front, combining cross-cyclical and counter-cyclical adjustments to keep the economy operating within a reasonable range.

　　Huang Wentao, chief economist of CITIC Construction Investment, said that with the tightening of liquidity during the Spring Festival and the arrival of the tax period, especially when the issuance of special bonds was approved ahead of schedule in the first quarter, market liquidity is still facing a certain degree of tension.

According to past experience, there is a high probability that after the rate cut, it will continue to release liquidity in conjunction with the RRR cut.

　　Lian Ping, chief economist and dean of the Research Institute of Zhixin Investment, recently published an article saying that the RRR cuts and "interest rate cuts" that the market cares about should be possible options for monetary policy in 2022.

In 2022, the prudent monetary policy will continue to be loose, and there may be a slight RRR cut once or twice throughout the year.

(Sino-Singapore Jingwei APP)