The loan interest rate fell. MLF operating interest rate is the capital cost obtained by commercial banks from large banks in China. The reduction of MLF operating interest rate will reduce the capital cost of commercial banks, and the loan interest rate is expected to decrease accordingly, which is beneficial to the real economy.
Bond bull market. When the operating interest rate of MLF decreases, the capital cost of commercial banks will decrease, and the financing cost of corporate bonds will also decrease, which will help promote the bond bull market.
The stock market is very active. The reduction of loan interest rate will reduce the financing cost of enterprises, improve the profitability of enterprises and help invigorate the stock market.
Property market adjustment. The decline in loan interest rate will increase the purchasing power of buyers, but it will also have a certain impact on the owners who have already bought houses, so the property market will face adjustment.
Trend of RMB exchange rate. The decline of MLF operating interest rate may lead to the decline of RMB exchange rate, which will promote exports to some extent.