The central bank's reduction in the convenience interest rate for regular borrowing and lending will help drive down the financing costs of the real economy. Interest rates | lending | economy
CCTV News: The data released by the People's Bank of China last night showed that the standing loan facility interest rate has been lowered by 10 basis points. Industry insiders generally believe that the standing loan facility interest rate is a tool for the central bank to provide liquidity to various financial institutions, and its reduction can help drive down the financing costs of the real economy.
The latest standing loan convenience interest rate table of the People's Bank of China shows that from June 13th, the overnight variety of standing loan convenience interest rates is 2.75%, the 7-day variety is 2.90%, and the 1-month variety is 3.25%. All three varieties have decreased by 10 basis points compared to before.
Wen Bin, Chief Economist of Minsheng Bank: It can play two roles. One is to reduce the cost of funds for financial institutions, and the other, more importantly, by lowering policy interest rates by the central bank, it can further drive down interest rates in the money market, bond market, and even credit market, thereby promoting a decrease in financing costs for the real economy.
![The central bank's reduction in the convenience interest rate for regular borrowing and lending will help drive down the financing costs of the real economy. Interest rates | lending | economy](https://a5qu.com/upload/images/acdb685f4bfa191831f722ade6d794eb.png)
The reduction is not only due to the convenience interest rate for regular borrowing and lending, but also to the central bank's 2 billion yuan 7-day reverse repurchase operation on June 13th, with a winning bid interest rate of 1.90%, a 10 basis point decrease from the previous day. The 7-day reverse repurchase operation conducted by the central bank today still had a winning bid interest rate of 1.90%, unchanged from yesterday.
The market generally believes that this adjustment is a manifestation of monetary policy strengthening countercyclical regulation and fully supporting the real economy. The moderate decrease of 10 basis points is conducive to balancing multiple goals such as maintaining price stability, financial stability, and supporting the real economy. It also takes into account internal and external balance, maintaining the basic stability of the RMB exchange rate at a reasonable equilibrium level.
Experts also believe that this adjustment may lead to a downward trend in the loan market quotation interest rate this month.
![The central bank's reduction in the convenience interest rate for regular borrowing and lending will help drive down the financing costs of the real economy. Interest rates | lending | economy](https://a5qu.com/upload/images/8bbd80d6d5a40469550ced4501ca25f3.png)
Wen Bin, Chief Economist of Minsheng Bank: Based on past experience, after the reduction of the reverse repurchase policy interest rate, I believe that in the mid-term lending convenience operation on June 15th, the MLF interest rate will also be correspondingly lowered. The loan market quotation interest rate for this month will also be correspondingly lowered, creating a favorable monetary and credit environment for the further stable recovery of our economy in the second half of the year.