1, RRR decreases (reducing the deposit reserve ratio). Deposit reserve is the funds that commercial banks must deposit in the central bank to ensure customers' withdrawal of deposits and settlement of funds. After RRR cut, the deposit reserve paid by commercial banks to the central bank decreased, thus releasing more funds for loans or other investments and increasing market liquidity.
2. cut interest rates (lower interest rates). Interest rate reduction means that the central bank adjusts the benchmark interest rate of loans to reduce the deposit and loan costs of banks. This will encourage enterprises and consumers to increase investment and consumption, reduce financing costs and stimulate economic development.