What Impact Will The Central Bank Cut On SLF Interest Rates?

The central bank yesterday announced that in order to speed up the construction of interest rate formation and regulation mechanism to meet market demand, explore the role of standing loan facility (SLF) interest rate to play the upper limit of the interest rate corridor, combined with the current liquidity situation and the need for monetary policy regulation, it is decided that today's branch lending rates will be reduced.

For the local legal person financial institutions that meet the macro prudential requirements, the interest rate of standing loans for overnight and 7 days is adjusted to 2.75% and 3.25% respectively.

Who is good for reducing interest rates on standing loans? The veteran analysts and financial commentators are constantly talking about WeChat's friends circle.

The central bank once again adjusts through policy tools.

On the whole, it is a trend of interest rate continuing downward. From the cost of capital, it is a good thing for the stock market, but in this round of market, the market does not consider the issue of capital. At present, it is a confidence for the future.

The environment is very conducive to the current market, but due to the very high short-term gains, especially on Thursday, the leading varieties of major growth themes basically surged across the board.

The central bank lowered the interest rate of standing loans to facilitate interest rates, which is a very important positive news, it will make the whole liquidity remain loose.

It will also be beneficial to economic stability and benefit from the pattern of the slow cow formed from the bottom of the baby. The A share market is still relatively loose in the monetary environment, which is beneficial to the whole market trend. The impact on the blue chips is relatively effective, such as banking, non bank financing, real estate, infrastructure and consumption blue chip stocks have a very good impact.

At present, the stock market's upward trend is consistent with China's economic fundamentals and the basic aspects of reform. The 13th Five-Year plan has been gradually formed, and next year will enter the planning period for 13th Five-Year. The central financial and economic leading group clearly put forward the idea of strengthening such a structural reform of supply side, providing a theoretical support for our next structural adjustment, and also a concrete work to be promoted in the next 13th Five-Year period.

This will release the market reform, create new supply and increase the vitality. The listed companies will make greater contributions. The listed company as a very active market entity will undertake considerable reform dividends in the process of supply side structural reform. At the same time, population reform and urban reform, including financial reform, tax reform, and administrative system reform, will also release considerable profits at the economic level.

Through the capital market, the interest rate of the central bank to reduce the standing loan convenience is a structural demand and structural adjustment to adapt to the market's liquidity. This is a reality. It should be said that monetary policy's further release of liquidity and further positive action are imperative.

Monetary policy continues to move, but we also believe that the continuous capital market will not be a direct impact, because interest rates have been one-year deposit interest rate has reached 1.5 of the lowest level in history, the actual elasticity of this is not very large, we continue to loose monetary policy expectations tend to be gentle, but the stock market in today's anti bomb, more is still constrained by two consecutive days down after the release of short term kinetic energy, from the disk, the gem is still playing a leading role, which shows that from the perspective of China's economic growth logic, the gem should become the main character of this market, after the index is back, it is now starting to choose to go up again, which is more fundamental than ever before, and the foundation is even more solid. The central bank recently decided to lower the standing interest rate, which is also a new measure. The downward rate of reloan rate should also create conditions for the further return of the basic interest rate, indicating that the central bank is moderately relaxed.

The stock market will also go up gradually and orderly, and the IPO will bring short-term pressure next week. But the risk of pressure has been released to some extent, so for investors, it is relatively optimistic to treat the market now.