In order to consolidate the good foundation of economic recovery and maintain reasonable and sufficient liquidity, People's Bank of China decided to reduce the reserve requirement ratio of financial institutions by 0.25 percentage points today (excluding financial institutions that have implemented a 5% reserve requirement ratio).
The reduction is expected to release medium- and long-term liquidity of more than 5000 billion yuan, and the weighted average reserve requirement ratio of financial institutions will be about 7.4% after this reduction.
The downside of financing costs in the real economy
Open further
Wen Bin, chief economist of China Minsheng Bank: The central bank lowered the RRR again in September, releasing more than 9 billion yuan of medium and long-term liquidity, injecting benefits into "real money", effectively encouraging financial institutions to increase capital investment in entities, macro indicators will show more positive changes, and the sustainability of the steady economic recovery will be further improved.
Experts said that before this RRR cut, People's Bank of China has cut the RRR once and twice this year, and the financing cost of the real economy has fallen significantly. People's Bank of China data show that from January to August, corporate loan interest rates have fallen to a historical low since statistics began, and personal housing loan interest rates have also dropped sharply by 1.8 percentage points year-on-year.
Zhang Yu, deputy director of Huachuang Securities Research Institute: The central bank's RRR reduction can continuously optimize the liquidity structure of commercial banks and financial markets, reduce the cost of funds at the bank liability end, further open up the downward space of asset-side loan interest rates, promote the steady reduction of corporate financing and resident credit costs, further improve the ability of finance to yield benefits to entities, and increase the intensity of stable investment and employment.
The specific timing of this RRR reduction is accurate
Take care of market liquidity
Experts said that in mid-September, liquidity faced with the impact of factors such as local bond issuance, tax period peak, and regulatory assessment, and the liquidity demand of financial institutions increased People's Bank of China.
Zhang Yu, deputy director of Huachuang Securities Research Institute: At present, the demand for funds is indeed large, on the one hand, the issuance of special bonds requires capital cooperation. On the other hand, under the background of stable growth, commercial banks have a demand to increase credit delivery, and in this scenario, the central bank's timely RRR reduction will help maintain reasonable and sufficient liquidity in the banking system and increase the long-term stable source of funds for commercial banks.
In addition, around the 15th of each month, it is usually the peak of tax payment, and the liquidity pressure will increase in stages. September is the final month of the quarter, and regulatory assessments such as liquidity indicators will also increase the liquidity demand of financial institutions.
Wen Bin, Chief Economist of China Minsheng Bank: After the superposition of multiple factors, the supply and demand of short-term funds in the market have increased, and the central bank, while weighing the medium and long-term liquidity supply, chooses the most urgent time for liquidity demand, and makes timely moves to protect the market.
Experts said that the total amount of liquidity released by the RRR reduction is moderate, and there is no flood irrigation, which reflects the positive signal that People's Bank of China accurately and appropriately replenishes the blood of banks and carefully protects market liquidity.
It is conducive to consolidating the good trend of the recovery of the real economy
Experts said that People's Bank of China after successive measures such as cutting interest rates and optimizing real estate financial policies, the second RRR reduction this year will promote sustained economic recovery and recovery.
From carrying out open market operations with precision in place, to continuing to increase the renewal of medium-term lending facilities (MLF), promoting the implementation of relending tools, and then announcing another 9.14 percentage point RRR cut on September 0, People's Bank of China have taken multiple measures to ensure reasonable and sufficient liquidity this year. Not only that, all departments have made concerted efforts to play a good macro policy combination fist, which has significantly increased the support for the real economy.
Zhang Yu, deputy director of Huachuang Securities Research Institute: Recently, the macro policy combination has made decisive and continuous moves, fiscal taxation, real estate, and monetary policy have successively made efforts, and the market is expected to improve significantly, but the resilience of economic recovery still needs to be enhanced, and the second RRR reduction will continue to reflect the policy support effect.
Experts said that some macro indicators have marginally improved positive changes, and this RRR reduction continues to enhance the stamina of financial support to expand domestic demand, which is conducive to the sustained moderate recovery of inflation indicators.
(CCTV reporter Liu Ying Sun Yan)