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The central bank RRR cuts interest rates and some thoughts on future policies.
After RRR cut interest rates over the weekend, the market generally interpreted it as less than expected, and the index directly opened lower. How to understand the current monetary policy? Let me briefly talk about my experience.

First of all, how to understand this round of RRR reduction?

According to estimates, this round of RRR cut by 25 basis points is equivalent to 530 billion yuan. Below market expectations, do not quench your thirst, and the index will lie directly for you to see. Yang Ma came out and explained: Yang Ma paid1000 billion profit before, and has already paid 600 billion. This will be put on the market, which is equivalent to 25 basis points. I think this is a good explanation. Not every citizen is a financial expert, and proper media guidance is very important for confidence.

Second, the follow-up policy orientation

The future will not be fully relaxed, mainly structural easing. Last night, the central bank and the safe issued 23 measures to ensure corporate financial services. In fact, it is directional easing. The industries involved are logistics, energy, agriculture, accommodation, catering and tourism.

Third, how to understand the future policy?

Let's make it clear first that the future policy will not be relaxed in an all-round way, but will remain structurally loose and deepen institutional reform. In fact, there is also a reason for the central bank to cut interest rates cautiously now. Different from the past, the current market is mainly insufficient demand, and interest rate cuts directly stimulate supply. There is a phenomenon here. It is understood that banks are not short of money now, but the problem is that they can't let it out. Whether it is joint-stock system or state-owned, or even urban rural commercial banks, money cannot be invested. The previous two major investors, real estate and local platforms, were severely restricted, but the investment capacity and system reform of other corporate banks did not keep up. Therefore, interest rate cuts and RRR cuts have little impact on bank investment, and more should be done to find ways to transmit stimulus policies to demand.