Experts say China's central bank is on the way to cut interest rates
Recently, the market for the People's Bank of China (PBOC) may further ease monetary policy expectations continue to rise. According to a number of industry sources, PBOC is considering in the next few weeks to announce a series of policy measures such as RRR cuts, interest rate cuts to support economic growth and stabilize the financial marekt.
It is understood that the RRR cut will mainly target loans to small and medium-sized enterprises, which is expected to reduce their financing costs. In addition, the interest rate cut policy will also be gradually introduced during the year to ease the pressure of high interest rates faced by small and micro enterprises.
For this policy adjustment, the industry generally believes that this is to deal with the financial difficulties faced by small and medium-sized enterprises under the current downward pressure on the economy, as well as to promote the development of the real economy. However, there are also views that this series of policy adjustments may trigger a flood of liquidity, leading to increased inflation risks. In this regard, the PBOC is also actively regulating and emphasizing that this policy adjustment is out of a cautious judgment of the macroeconomic situation.
It is worth noting that the PBOC will also take into account the healthy development of the real estate market when formulating relevant policies. Therefore, in cutting interest rates, it may take a more cautious attitude to prevent excessive price increases.
Overall, this RRR and interest rate cut measures will be comprehensive and comprehensive, aiming to work together through various means to achieve a balance between stable growth and anti-inflation. Although there are certain uncertainties, it is foreseeable that the Chinese economy is expected to usher in a new round of stable growth in the coming period.