The central bank will launch 1.2 trillion reverse repo experts: no reduction in reserve for the time being

category:Finance
 The central bank will launch 1.2 trillion reverse repo experts: no reduction in reserve for the time being


Dong ximiao, a special researcher of the national finance and development laboratory, believes that the central banks policies will create better conditions and provide more support for the prevention and control of financial services.

According to the central bank, the reverse repurchase operation is mainly to maintain the reasonable and sufficient liquidity of the banking system and the stable operation of the money market in the special period of epidemic prevention and control.

Wen bin, chief researcher of China Minsheng Bank, said that the central bank usually issued an announcement on the day of the open market operation, and this announcement was issued one day in advance to carry out the reverse repo operation in the open market. In the current special period of epidemic prevention and control, this move is conducive to maintaining sufficient liquidity supply in the post holiday market, helping financial institutions to manage liquidity, avoid market panic and maintain Interest rates in the money market are running smoothly.

So, will the central bank continue to release liquidity through such tools as reducing reserve? The original expectation is that the central bank may reduce the standard 2-3 times in 2020. I think it may reduce the standard 3-4 times due to the impact of the epidemic, and the probability of reducing the standard is increasing. However, reverse repo has released liquidity, so the reduction will be later and will not be immediately reduced. Dong added.

According to the financial times, pan Gongsheng said the central bank will further strengthen relevant financial services in the next step. For example, appropriately reduce loan interest rate, increase credit loan and medium and long-term loan, support relevant enterprises to overcome the impact of the epidemic; for wholesale and retail, accommodation and catering, logistics and transportation, cultural tourism and other industries greatly affected by the epidemic, financial institutions shall not blindly take out loans, cut off loans, pressure loans, etc. However, according to Dong ximiao, the traditional interest rate cut, that is, the benchmark interest rate for deposits and loans, is still unlikely to be lowered. Because from the perspective of the policy implementation process of the central bank, now the central bank is more inclined to reduce the financing cost through MLF and so on. On December 20, the LPR was not adjusted, so on February 20, the LPR rate will be reduced by another 5 basis points or more. (Zhongxin Jingwei APP) source: responsible editor of Zhongxin Jingwei: Chen Hequn u301d nb12679

According to the financial times, pan Gongsheng said the central bank will further strengthen relevant financial services in the next step. For example, appropriately reduce loan interest rate, increase credit loan and medium and long-term loan, support relevant enterprises to overcome the impact of the epidemic; for wholesale and retail, accommodation and catering, logistics and transportation, cultural tourism and other industries greatly affected by the epidemic, financial institutions shall not blindly take out loans, cut off loans, pressure loans, etc.

However, according to Dong ximiao, the traditional interest rate cut, that is, the benchmark interest rate for deposits and loans, is still unlikely to be lowered. Because from the perspective of the policy implementation process of the central bank, now the central bank is more inclined to reduce the financing cost through MLF and so on. On December 20, the LPR was not adjusted, so on February 20, the LPR rate will be reduced by another 5 basis points or more. (Zhongxin Jingwei APP)