On April 28th, Wang Qing, Chief Macro Analyst of Dongfang Jincheng, stated that considering the current changes in the external economic and trade environment, the real estate market, and price trends, the timing for “timely reserve requirement ratio and interest rate cuts” in the second quarter is ripe. It is expected that the magnitude of this round of interest rate cuts may reach 0.3 percentage points; The reserve requirement ratio reduction may reach 0.5 percentage points, releasing 1 trillion yuan of long-term funds. This can effectively stimulate the financing needs of enterprises and residents, expand investment to promote consumption, and boost market confidence. In the view of Li Chao, Chief Economist of Zheshang Securities, the core driving factor for reserve requirement ratio reduction is to cooperate with fiscal policy, but the central bank will also comprehensively consider the maturity and deployment of buyout reverse repurchase and MLF (Medium Term Lending Facility); In terms of interest rate cuts, it is still necessary to pay attention to the trend of DR007 (weighted average interest rate for 7-day repurchase of interbank market deposit institutions) and 7-day reverse repurchase operation interest rate. If the market interest rate continues to be lower than the policy interest rate, the window for interest rate cuts will open. (Securities Daily)
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