The Central Bank Restarted The Repurchase Of &Nbsp; The Net Returned Early This Week.

Last week, after a complete moratorium on open market operations, in February 28th,

This week, the open market has only 2 billion yuan of maturity funds, while the 28 day repurchase operation scale is 10 billion yuan, which means that the open market has achieved a net return in advance.

Market participants believe that the scale of the repurchase operation of 10 billion yuan is not large, but restarting the repurchase shows that when the liquidity tends to be loose, the central bank is currently considering stabilizing interest rates, and in March, the funds for the open market are 244 billion yuan, much higher than the first two months.

In February 24th, the RMB deposit reserve ratio of the depository financial institutions dropped 0.5 percentage points to take effect, injecting about 400 billion yuan into the financial system, and at the same time, the central bank's 7 day reverse repurchase net release liquidity was about 200 billion yuan, the market capital surface began to grow loose from tight, the short-term interest rate dived sharply, and the overnight and 7 day varieties fell by nearly 100 basis points.

28 days,

CICC expects that the open market in March is expected to turn back to net investment. The one-year central bank will continue to stop. However, whether the central bank will further reduce the required reserve rate depends on the change of international liquidity.

"The central bank's monetary policy is facing a dilemma. On the one hand, the domestic economic downturn and the fall in inflation support the policy to further relax. On the other hand, the global monetary policy loosely pushed up commodity prices and oil prices, increasing the potential risks of the return of imported inflation and foreign exchange holdings.

It is the interference and restriction of the latter factor that make this monetary policy easing lag behind the fall of the real economy and inflation, and the uncertainty of the corresponding economic recovery is greater than that of 2009.

The latest report released by CICC said.

In the case of monetary policy neutrality, the average value of repo in CICC is expected to fall seasonally due to the increment of fiscal deposits and cash flow back to about 3.5%.

However, if the two quarter PPI entered a negative area compared to the same period last year, and the demand for corporate loans continued to fall, the possibility of the central bank's interest rate cut would increase.