First, the significance of RRR cut: RRR cut is one of the expansionary monetary policies of the central bank. The central bank reduces the statutory deposit reserve ratio, which affects the number of banks' loanable funds, thus increasing the credit scale, increasing the money supply, releasing liquidity and stimulating economic growth. Reducing the reserve is only to hedge the risk of a hard landing and can be used for stock trading. If the policy strength exceeds market expectations, the best performance is banking stocks; But for the future economic situation, monetary policy is not omnipotent.
Second, the significance of interest rate reduction: interest rate reduction refers to the bank's use of interest rate adjustment to change cash flow. When banks cut interest rates, the income of funds deposited in banks will decrease, so cutting interest rates will lead to the outflow of funds from banks, and deposits will become investment or consumption, which will lead to increased liquidity of funds. Generally speaking, cutting interest rates will bring more funds to the stock market, so it will help the stock price rise. The interest rate cut will stimulate the development of the real estate industry. Interest rate cuts will promote the expansion and reproduction of corporate loans, encourage consumers to buy bulk commodities with loans, and the economy will gradually heat up.
Third, interest rate cuts and RRR cuts are also very different. The interest rate cut reduces the price of the loan, that is, the interest rate of the loan; RRR cut interest rates in order to increase the money supply and increase the amount of loans that can be put in. Therefore, judging from the news of RRR interest rate cut, it will not directly reduce the loan interest rate. Since the loan interest rate is changed to float at the positive and negative points of LPR, whether the loan interest rate is lowered actually depends on whether the LPR is lowered. If the interest rate is lowered, the LPR will be lowered, but the RRR will not be lowered.
On April 3, 4, the central bank said that in order to support the development of the real economy, promote the support for small and medium-sized enterprises, and reduce the actual cost of social financing, it decided to reduce the deposit reserve ratio by 1 percentage point for rural credit cooperatives, rural commercial banks, rural cooperative banks, rural banks and city commercial banks operating only in provincial administrative areas, and in April of 15 and1percentage point. The People's Bank of China decided to reduce the interest rate of excess deposit reserve of financial institutions in the central bank from 0.72% to 0.35% from April 7th.
Small and medium-sized banks in China are widely distributed, based on local conditions and rooted at the grassroots level. They are an important force in serving small and medium-sized enterprises and are inherently inclusive. Reducing the deposit reserve ratio and enhancing the financial strength of small and medium-sized banks will help guide small and medium-sized banks to issue loans to small and medium-sized enterprises at more favorable interest rates, expand credit supply to agriculture, foreign trade and industries seriously affected by the epidemic, and enhance support for the recovery and development of the real economy. The targeted reduction of the deposit reserve ratio is aimed at small and medium-sized banks. According to the relevant person in charge of the central bank, small and medium-sized banks include two types of institutions: one is rural financial institutions such as rural credit cooperatives, rural commercial banks, rural cooperative banks and village banks; The other is a city commercial bank operating only in the provincial administrative region. There are nearly 4,000 two types of institutions, accounting for 99% of the banking system.