As the Chinese New Year approaches, the eyes of the market are focused on the actions of the People's Bank of China. Sure enough, on February 2, the central bank launched a large-scale reverse repo operation in the open market, trying to inject a stable liquidity into the market on the eve of the holiday. But did this operation really bring about the stability of the market as everyone expected?
In detail, the central bank's operation includes a 7-day reverse repurchase of 83 billion yuan and a 14-day reverse repurchase of 14 billion yuan. The winning interest rate is 180 and 195％。Although these two figures seem ordinary, they made quite a splash in the financial markets of the day. Because at the same time, there are as many as 461 billion yuan of reverse repurchase due, resulting in a single day net withdrawal of funds reached an astonishing 364 billion yuan.
Behind this series of figures, in fact, the central bank hides the deep consideration of the market. The large-scale liquidity withdrawal is undoubtedly to stabilize market expectations and avoid excessive capital flooding during the Spring Festival, which will lead to financial risks. By adjusting short-term interest rates, the central bank is also trying to achieve effective transmission of monetary policy and guide market interest rates to a more reasonable level.
Of course, this operation of the central bank is not without controversy. Some people believe that such a reverse repo operation may cause a certain shock to the market, especially with such a large amount of capital withdrawal. However, more people believe that this move by the central bank is necessary and timely to maintain the stability of the financial market and the healthy development of the economy.
So, what do you think of the central bank's operation? Do you think it helps stabilize the market, or do you think it may pose some uncertain risks? Feel free to leave a message in the comment section to share your views. Publish a collection of dragon cards to share millions of cash