**: Refer to the news network.
According to Reuters on February 5, the People's Bank of China lowered the reserve requirement ratio of financial institutions by 0 on the 5th5 percentage points, which will release about 1 trillion yuan of long-term funds.
People's Bank of China Governor Pan Gongsheng announced the RRR cut on January 24 and took effect on February 5.
According to the report, the RRR cut is the first in this year, and Chinese policymakers are stepping up efforts to support the economy.
According to Bloomberg News on February 5, China's money market is usually at risk of a shortage of funds during the Spring Festival holiday, as bank customers take out more cash than usual. However, given that Beijing will provide long-term liquidity of about 1 trillion yuan to the market on the 5th to help support the economy, the likelihood of a shortage of funds this year will be reduced.
According to the report, ANZ Bank estimates that before the Spring Festival holiday in the Year of the Dragon, the liquidity shortage will shrink by 25% from previous years, to 1About 5 trillion yuan. This gap, which can largely be filled by central bank cash injections, is unlikely to trigger a spike in short-term borrowing costs.
Liu Jie, head of macro strategy at Standard Chartered Bank China, said: "I am not too worried about liquidity issues in the first quarter. ”
According to the report, as the Lunar New Year is about to begin, the central bank's liquidity injection has boosted the financing situation. Rarely has the People's Bank of China taken such aggressive easing measures so close to the holidays.
Immediately after the Lunar New Year, dealers will be concerned about whether Beijing will reduce the interest rate on the medium-term lending facility.
Analysts say the authorities will take more pro-growth easing measures to maintain abundant liquidity; Interest rates are likely to be cut in the coming months, and another RRR cut is planned.
Oxford Economics economist Grace Lo said: "Keeping liquidity loose will support credit when demand picks up again. However, the authorities are also concerned that interest rates that are too low could increase financial risks. We expect only a slight easing. (Compiled by Adrian Cheng).