This RRR cut continues to enhance financial support, expand domestic demand stamina and carefully care for market liquidity.

　　CCTV News:In order to consolidate the good foundation of economic recovery and maintain a reasonable and abundant liquidity, the People’s Bank of China decided to reduce the deposit reserve ratio of financial institutions by 0.25 percentage points on September 15th (excluding financial institutions that have implemented the 5% deposit reserve ratio). This downward adjustment is expected to release medium-and long-term liquidity of more than 500 billion yuan. After this downward adjustment, the weighted average deposit reserve ratio of financial institutions is about 7.4%.

　　Experts said that before the RRR cut, the People’s Bank of China has lowered the RRR once and cut interest rates twice since 2023, and the financing cost of the real economy has dropped significantly. According to the data of the People’s Bank of China, from January to — In August, the interest rate of corporate loans has fallen to a historical low since statistics, and the interest rate of individual housing loans has also dropped by 0.95 percentage points year-on-year.

　　Grasp the specific opportunity and care for market liquidity accurately.

　　Experts said that in mid-September, liquidity was significantly affected by local debt issuance, peak tax period, regulatory assessment and other factors, and the liquidity demand of financial institutions rose. In this case, the People’s Bank of China lowered the RRR in time, with accurate timing and care for market liquidity.

　　In addition, the peak of tax payment is usually around the 15th of each month, and the liquidity pressure will increase in stages. September is the end of the season, and regulatory assessment such as liquidity indicators will also increase the liquidity demand of financial institutions.

　　Experts said that the total amount of liquidity released by the RRR cut was moderate, and there was no "flood irrigation", which reflected the positive signal that the People’s Bank of China accurately and moderately "enriched the blood" for banks and carefully cared for market liquidity.

　　It is conducive to consolidating the foundation for the recovery of the real economy.

　　Experts said that the second RRR cut by the People’s Bank of China this year will promote the sustained economic recovery and recovery.

　　Since 2023, the People’s Bank of China has taken various measures to ensure a reasonable and sufficient liquidity. Not only that, all departments made concerted efforts to lay a good macro-policy "combination boxing", which significantly increased the support of the real economy.

　　Experts said that some macro indicators have positive changes with marginal improvement, and this RRR cut has continuously enhanced the stamina of financial support to expand domestic demand, which is conducive to the sustained and moderate recovery of inflation indicators.