Central Bank Cut Interest Rates At The Same Time To Reduce Financial Risks And Stabilize Investment Expectations.

Central bank ultra expected double drop: stability of residents' investment expectations

Industry experts say that in the future

Will give more support to the capital market, which is a positive for the A share market.

"From the recent two weeks of A share market performance, signs of financial risk have loomed.

Therefore, the central bank resolutely adopts targeted reduction and interest rate reduction measures to cope with it. On the one hand, it continues to reduce the financing costs of enterprises, on the other hand, it is to maintain financial stability.

A businessman from a state-owned commercial bank told the Securities Daily reporter that this is beyond expectation.

"In addition to continuing to reduce the financing costs of enterprises, it should be related to the central bank's emphasis on" effectively preventing and resolving all kinds of financial risks ".

In the evening of June 27th, the Securities Daily reporter learned from the central bank that the central bank decided to implement targeted reduction of financial institutions from June 28, 2015 onwards, so as to further support the development of the real economy and promote structural adjustment.

At the same time, since June 28, 2015, the RMB (6.2090, -0.0004, -0.01%) loans and deposit benchmark interest rates of financial institutions have been lowered to further reduce the financing cost of enterprises.

Among them, the one-year lending benchmark rate of financial institutions is reduced by 0.25 percentage points to 4.85%; the one-year deposit benchmark rate is reduced by 0.25 percentage points to 2%; other grades of loans and deposit benchmark interest rates, and personal housing provident fund deposit and loan interest rates are adjusted accordingly.

This "double drop" is the central bank since November 2014 to start the current round of interest rate cut quasi cycle, the fourth interest rate cut, third down.

The central bank announced the same interest rate reduction and reduction in December 12, 2008.

A number of agencies and brokerage analysts have said that the release will be about 470 billion yuan in liquidity.

Lu Lei, the director of the Central Bank Research Bureau, believes that one of the basic features of the policy adjustment is the simultaneous use of quantitative tools and price tools, changing the operation mode of using quantitative tools and price tools alternately in the past, reflecting the full balance of macroeconomic operation and financial stability.

Lu Lei emphasized that

To lower the financing cost of the real economy further downward, and provide policy support for stabilizing the investment and consumption expectation of enterprises and residents.

"It is easy to see from the position of the central bank responsible person that the" double reduction "is closely related to the prevention of financial risks, the issuance of new shares and the stabilization of residents' investment expectations.

The above state-owned commercial bank traders said that monetary policy will give more support to the capital market in the future, which is a good thing for the A share market.