Friends of cows, there is a lot that has been discussed recently, namely that last Friday the Federal Reserve announced a total reduction aimed at optimizing the financial structure of financial institutions, improving the capacity of financial services and better supporting the real economy. Today we are going to talk about what impact this will have on us.
Contents: The Central Bank will set the reserve rate for financial institutions by 0.5 percentage points on 15 July (excluding financial institutions that have implemented a 5% deposit reserve rate), representing a long-term fund of about RMB 1 million.
A drop in the deposit reserve ratio means that financial institutions have less money to hand over to the central bank, more money in the market, and money liquidity increases. So which industries will benefit after the policy is implemented? Share my thoughts with all of you, and we are also welcome to discuss!
First, what is the background for the formulation of relevant policies?
Starting in the second half of last year, China was the first country to initiate policy normalization and fiscal tightening. Regardless of interest rate adjustments or fiscal tightening, the overall decline in social finance has served as a basis for further policy adjustments. Looking back at our macroeconomic indicators, the pace of post-pandemic employment and GDP growth in the second quarter is not as expected, so the current currency rout is also a positive market guide. The previously worrisome transit expansion in the market was accompanied by the fall in the PPI peak and the CPI trend pullback, leaving room for a comprehensive decline.
Second, why will this policy be adjusted
From a policy perspective, the Central Bank clearly stated that “the prices of some major commodities have continued to rise this year, with some small...