Yesterday (15th), the People's Bank of China carried out large-scale reverse repurchase operations, and the central bank also carried out two reverse repurchases on Monday and Tuesday this week. After three reverse repurchase operations, the central bank's total net injection scale to the market reached 1039.3 billion yuan, of which 958.4 billion yuan was net injection in one day on Wednesday, and the scale of net injection scale reached the second highest level in a historically high.
So, what are the considerations of the central bank's large amount of liquidity in the market at this point in time? What impact will it have on enterprises and the people?
What does it mean to have so much money?
When we talk about releasing liquidity, what we talk more about is the reduction of reserve requirement ratio and interest rates. For example, the reserve requirement ratio was cut by 0.5 percentage points in September last year, and the liquidity released was 1 trillion yuan, which is basically the same as this time.
What is the use of so much money?
In the past few days, an indicator called money market interest rate has risen very quickly, and there is a total amount of money called medium-term lending facilities that is more than 900 billion yuan due, these are professional terms. However, these indicators are all indicating that the market is short of money.
And the Spring Festival is coming soon, everyone goes to the bank to withdraw cash to package red envelopes, and companies give you year-end bonuses, etc. These all require a lot of funds. The central bank's net injection of more than 1 trillion yuan at this time is to prevent the capital market from being tight, reduce the money market interest rate, and make the cost of enterprises lower.
