The first interest rate cut and reserve requirement ratio reduction of the year has arrived! On the 8th, the policy interest rate was lowered by 0.1 percentage points. A week later, a 0.5 percentage point reduction in reserve requirement ratio will also arrive as scheduled. The interest rate cut and reserve requirement ratio cut fully reflect the moderately loose monetary policy stance, and exert efforts in terms of quantity, price, structure, etc., providing strong support for stabilizing employment, enterprises, markets, and expectations. The implementation of interest rate cuts has driven down the financing costs of enterprises and residents. Starting from the 8th, the open market 7-day reverse repurchase operation interest rate has been adjusted from the previous 1.50% to 1.40%, a decrease of 0.1 percentage points. Pan Gongsheng, President of the People's Bank of China, recently introduced at the press conference held by the National Information Office that the policy interest rate was cut by 0.1 percentage points, which is expected to drive the loan market quoted rate (LPR) down by about 0.1 percentage points simultaneously. Meanwhile, guided by the interest rate self-discipline mechanism, commercial banks will also correspondingly lower deposit interest rates. The interest rate cut fully reflects the increased efforts in countercyclical regulation. ”Wen Bin, Chief Economist of China Minsheng Bank, stated that through interest rate transmission, the comprehensive financing cost of the real economy will further decrease, consolidating the economic fundamentals. At the same time, the simultaneous decline of LPR and deposit interest rates is conducive to maintaining the stability of the net interest margin of commercial banks. Since the beginning of this year, China's loan interest rates have remained at historically low levels. In March, the weighted average interest rate for newly issued corporate loans was about 3.3%, a year-on-year decrease of 0.45 percentage points; The interest rate for newly issued inclusive small and micro enterprise loans is about 3.6%, a year-on-year decrease of 0.55 percentage points. The reduction this time is not only the policy interest rate, but also the interest rates for supporting agriculture and small loans, housing provident fund loans, and so on. This means that the financing costs for businesses and residents will be further reduced, and the interest burden will become lighter. According to the announcement of the People's Bank of China, since May 8, the interest rate of individual housing provident fund loans has been lowered by 0.25 percentage points. The scope of this interest rate adjustment includes both newly issued housing provident fund loans and existing housing provident fund loans. How much impact will this downgrade have? Industry insiders estimate that taking a loan amount of 1 million yuan, a loan term of 30 years, and equal principal and interest repayment as an example, the total interest expenses of a homebuyer's first personal housing provident fund loan will be reduced by about 47600 yuan. Pan Gongsheng stated that after the reduction of personal housing provident fund loan interest rates, it is expected to save more than 20 billion yuan in annual interest expenses for residents' provident fund loans, which is conducive to supporting the rigid housing demand of households and promoting the stabilization of the real estate market. From May 15, the People's Bank of China will reduce the deposit reserve ratio of financial institutions by 0.5 percentage points (excluding financial institutions that have implemented a 5% deposit reserve ratio), and is expected to provide about 1 trillion yuan of long-term liquidity to the financial market. This means that financial institutions have less money locked in by the central bank and correspondingly more money available for use. ”Wang Qing, Chief Macro Analyst of Dongfang Jincheng, believes that as the supply of medium and long-term liquidity increases, the rolling continuation of short-term liquidity tools will also decrease accordingly, which will help reduce the cost of bank liabilities and further increase support for the real economy. At the same time, the People's Bank of China has also reduced the deposit reserve ratio of auto financing companies and financial leasing companies from the current 5% to 0%. According to our current business scale, reducing the reserve requirement ratio to 0% can release over 3 million yuan in funds. ”According to Mi Shuguang, Vice President of Jianxin Financial Leasing Company, the company will fully leverage its "financial asset" characteristics, continuously improve the quality and efficiency of financial service equipment updates, and actively invest the funds released from reserve requirement ratio cuts into industries such as equipment manufacturing, new infrastructure construction, and clean energy. Pan Gongsheng stated that these two types of institutions directly provide financial support for areas such as automobile consumption and equipment renewal investment. After reducing the reserve requirement ratio, it will effectively enhance the credit supply capacity of these two types of institutions for specific fields. In the past two days, the news of lowering the interest rate of structural monetary policy tools has attracted special attention from Chen Lijuan, the Chief Financial Officer of Suzhou Tianshun New Energy Technology Co., Ltd., as structural tools are making efforts to tap potential and expand domestic demand. Last year, we obtained a loan of nearly 10 million yuan from Industrial and Commercial Bank of China. With the support of the policy of re lending for technological innovation and transformation, the interest rate has been significantly reduced, which is equivalent to saving the enterprise about 100000 yuan in capital costs every year. We hope to use low-cost funds to further enhance production capacity and expand the market this year. ”Chen Lijuan said. Many of the interest rate and reserve ratio reduction measures involve structural monetary policy tools, especially the first time that the People's Bank of China comprehensively lowered the interest rate of structural monetary policy tools by 0.25 percentage points, which generally reduced the interest rate of special structural monetary policy tools to 1.5%. Structural interest rate cuts are conducive to strengthening the policy incentive effect on commercial banks. ”Dong Qingma, Vice Dean of the China Institute of Finance at Southwest University of Finance and Economics, said that this measure can save banks about 15 billion to 20 billion yuan in funding costs annually, further incentivizing commercial banks to strengthen credit investment in major strategic, key areas, and weak links. At the same time, the amount of multiple refinancing tools will further increase, with the amount of refinancing for scientific and technological innovation and transformation, and refinancing for agriculture and small businesses reaching 800 billion yuan and 3 trillion yuan respectively; 500 billion yuan service consumption and elderly care re loans have been launched, further expanding and upgrading the previous policy of universal elderly care special re loans. Dong Qingma said that the combination of quantity and price of refinancing tools this time is strong, widely supported, and more convenient to use. By fully utilizing the dual functions of monetary policy tools in terms of quantity and structure, it is conducive to promoting banks to strengthen their support for economic structural transformation. It is reported that by the end of April, there were 9 structural monetary policy instruments in existence, with a stock balance of about 5.9 trillion yuan, accounting for 13% of the balance sheet size of the People's Bank of China. Structural monetary policy tools can help promote the resolution of some structural contradictions and problems. ”Pan Gongsheng said that in the future, based on the operation of the economy and finance and the effectiveness of various tools, the scale of tools can be expanded, policy elements of tools can be improved, or new policy tools can be created. (New Society)