Banks drop small scale chopper the rate cut will also not too far from the truth
China's Central Bank yesterday reduced notice is taken by the Central Bank's comprehensive and targeted methods, comprehensive help commercial banks improve lending capacity. Notice that since February 5, 2015 will lower the reserve requirement ratio for financial institutions by 0.5%; and at the same time to achieve a targeted reduction of standard city commercial banks, non-County-level rural commercial banks, reduce reserve rates an additional 0.5% for China Agricultural Development Bank, additional reserve requirements for its 4%.
in General, the approaching Spring Festival funds surface tension, since from January 22 to restart the reverse repurchase operations, the Central Bank continue to increase the amount. Meanwhile, last year's economic growth to the lowest level in nearly 25 years, economists generally think the growth will be lower this year. In order to ensure liquidity and stability, boost economic development, the current Central Bank has taken a number of ways to deal with, so at this time both comprehensive and targeted drop is not surprising.
expects central banks plus some mainly for small businesses and farmers more targeted measures, banking real will release more than $ 100 billion of funds for lending. But many economists say if Chinese consumers and companies are not borrowing will expand lending won't help.
banks said funding costs are rising, and they need help from the Central Bank in terms of lending. Central University of finance and Director of the China Banking Research Center says Guo tianyong, monetary policy is the total adjustment policies, but also assume structural adjustment function. On the trend of the future monetary policy or basic principles of sound, minor adjustments according to the economic situation, but it does not exclude the possibility of another interest rate cut this year drop.