In the domestic market rules, MLF refers to medium-term lending facilities. It also often refers to the loan interest provided by the central bank to major banks, which pledge their national debt, central bank bills and high-grade credit bonds to the central bank. So, what effect does the central bank's RRR cut have on the market?

What effect does the central bank's RRR cut on MLF have on the market?

On the whole, it must be good. More money in the market will reduce the financing cost of enterprises and make them develop better. First of all, financial stocks, banks, insurance companies and brokers are all good. On the one hand, their financing cost is low. On the other hand, these financial companies have invested in a large number of other enterprises, so they can improve their performance in these two aspects. Secondly, it is good for high-tech industries and technology enterprises. These enterprises are characterized by high input and high output, and their performance will also grow rapidly while their liabilities rise simultaneously.

Generally speaking, the central bank's move is to reduce their financing costs. However, from the perspective of segmentation, different industries have different benefits. In addition, interest rate cuts will definitely benefit the real estate sales industry. In addition to reducing MLF, another is to reduce the benchmark interest rate of bank loans and benefit the real estate sector.