When the deposit reserve ratio is lowered, the reserves deposited in the central bank can be reduced. Then, the funds that can be lent will increase, and usually the deposit and loan interest rates will also decrease. This is a fiscal policy adopted when the economy is relatively loose. Under the condition of deflation, it will also stimulate loans and economic growth by lowering deposit and loan interest rates.

Impact on ordinary people:

1. It's easier to cancel personal mortgage.

2. The yield of wealth management products is lower.

3. Bond products are welcomed by the market.

4. Provide a suitable monetary environment.

Extended data:

First, downward adjustment measures

Since June+10/October+May, 2008, the RMB deposit reserve ratio of deposit-taking financial institutions has been lowered by 0.5 percentage points; From June 9, 2008, the benchmark interest rates for one-year RMB deposits and loans were lowered by 0.27 percentage points, the benchmark interest rates for other term grades were adjusted accordingly, and the interest rate for individual housing provident fund loans was also lowered by 0.27%.

This is the second time that the central bank has lowered the "double rate" since 2008. The last time a similar decision was made was on September 65438, 2005. Different from the practice of lowering the "double rate" in September, the central bank not only lowered the benchmark interest rate of 1 year loans by 0.27 percentage point, but also adjusted the interest rate of time deposits accordingly.

After adjustment, the interest rate of 1 year deposit was reduced from the previous 4. 14% to 3.87%. Deposit interest rate remains the same. The 1 year loan interest rate was lowered from the previous 7.2% to 6.93%. In addition, the deposit reserve ratio has also been lowered by 0.5 percentage points across the board, instead of adopting the previous practice of "only reducing the deposit reserve ratio of small and medium-sized financial institutions 1 percentage point".

Second, policy changes.

Monetary policy has shifted. Regarding this adjustment by the central bank, Lu Zhengwei, chief economist of Industrial Bank, said in an interview that the introduction of relevant measures means that the monetary policy implemented by China has begun to turn.

Political commissar Lu believes that the rate cut is faster than the market imagined. The last time the central bank lowered the "double rate" was in September 2008, which is about 1 month now. Earlier, some institutions thought that the deposit reserve ratio or loan interest rate might be lowered again around 65438+February. He believes that the rapid response ability of the central bank reflects the forward-looking and flexibility of monetary policy.

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