Dec 08, 2021 08:38 AM (GMT+8) · EqualOcean
Financial Associated Press, Dec. 8 - CITIC Securities research report pointed out that the people's Bank of China decided to cut the refinancing interest rate for agriculture and small loans by 0.25 percentage points from December 7. After the reduction, the 3-month, 6-month and 1-year refinancing interest rates were 1.7%, 1.9% and 2% respectively. Lowering the interest rate for supporting agriculture and small loans seems to be a "targeted interest rate cut", but it is completely different from lowering the interest rate of Omo or MLF. In fact, it is more biased towards the support of structural credit policy. We believe that the targeted reduction of the refinancing interest rate will not drive the policy interest rate adjustment, but can effectively boost credit. In line with a series of recent policy signals, it is expected that the credit space has been opened, the benefits will be exhausted after the RRR reduction, and the bond market may increase the adjustment in the future.

This text is a result of machine translation.