The central bank announced! Interest rate cuts, RRR cuts and down payment cuts
[Dahe Finance Cube reporter Yan Rongrong Yang Sa]On the morning of September 24th, the State Council Press Office held a press conference. Pan Gongsheng, Governor of the People’s Bank of China, Li Yunze, Director of the State Financial Supervision and Administration, and Wu Qing, Chairman of the China Securities Regulatory Commission introduced the financial support for high-quality economic development and answered questions from reporters.
The recent RRR cut is 0.5 percentage points.
At the press conference, the People’s Bank of China announced that it will reduce the deposit reserve ratio by 0.5 percentage points in the near future, and provide long-term liquidity to the financial market of about 1 trillion yuan. It may be lowered by 0.25-0.5 percentage points before the end of the year.
At the same time, the central bank’s policy interest rate will be lowered, and the 7-day reverse repurchase operation interest rate will be lowered by 0.2 percentage point from the current 1.7% to 1.5%, so as to guide the loan market quotation interest rate (LPR) and deposit interest rate to go down simultaneously and keep the net interest margin of commercial banks stable.
Stock mortgage interest rate cut
Regarding the high-profile mortgage, Pan Gongsheng announced that it would lower the interest rate of existing mortgage and unify the minimum down payment ratio of mortgage. Specifically:
Guide commercial banks to reduce the interest rate of existing mortgage loans to the vicinity of the interest rate of new mortgage loans, and the average decline is expected to be about 0.5 percentage points.
Reduce the minimum down payment ratio of the second home loan at the national level from 25% to 15%, and unify the minimum down payment ratio of the first suite and the second suite.
Create special refinancing for stock repurchase and increase holdings.
Pan Gongsheng said that new monetary policy tools will be created in the near future to support the stable development of the stock market. Creating facilities for the exchange of securities, funds and insurance companies, and supporting qualified securities, funds and insurance companies to obtain liquidity from the central bank through asset pledge will greatly improve their ability to obtain funds and increase their stock holdings, create special re-loans, guide banks to provide loans to listed companies and major shareholders, and support repurchase and increase their stock holdings.
Analysis: Stabilize economic growth by making profits.
Zhou Maohua, a macro researcher in the financial market department of China Everbright Bank, said in an interview with Dahe Finance Cube that the central bank lowered the interest rate of existing mortgage loans and substantially lowered the down payment ratio of home purchases. The central bank’s efforts to stabilize the property market were unprecedented, demonstrating the central bank’s determination to stabilize the property market, which will have positive effects in many ways. By guiding financial institutions to reduce the interest rate of existing mortgages reasonably, the central bank can avoid the spread between old and new mortgages, which is conducive to better stabilizing banking business; It is helpful to reduce the monthly mortgage interest expenses of stock owners and release the comprehensive effect of consumption; The central bank’s sharp reduction in the down payment ratio of home purchases will help lower the threshold for home purchases and help boost the demand for just-needed and improved housing; At the same time, positive policies will help stabilize confidence in the recovery of the property market. The domestic property market and consumption recovery momentum have increased, and the economy is expected to accelerate recovery.
Zheng Jiawei, chief analyst of fixed income of Yongxing Securities Research Institute, said that the central bank aims to reduce the financing cost of the real economy, resolve the shortage of effective domestic demand, and stabilize economic growth by making profits through various means such as cutting interest rates, lowering the RRR and lowering the interest rate of existing mortgage loans. These policy adjustments will help to promote the healthy development of the real estate market, reduce the proportion of mortgage payment, improve the consumption level and promote the stabilization and recovery of the economy.
Editor: Liu Anqi | Review: Zhang Yipeng | Review: Li Zhen | Supervision: Wan Junwei
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