Abstract The People's Bank of China decided to cut the benchmark interest rates for financial institutions' RMB loans and deposits from May 11, 2015. The one-year lending benchmark interest rate of financial institutions was lowered by 0.25 percentage points to 5.1%; the one-year deposit benchmark interest rate was lowered by 0.25 percentage points...
The People's Bank of China decided to cut the benchmark interest rates for financial institutions' RMB loans and deposits from May 11, 2015. The one-year lending benchmark interest rate of financial institutions was lowered by 0.25 percentage points to 5.1%; the one-year deposit benchmark interest rate was lowered by 0.25 percentage points to 2.25%, and combined with the promotion of interest rate marketization reform, the upper limit of the floating range of deposit interest rates of financial institutions was determined by the deposit benchmark. The interest rate is adjusted by 1.3 times to 1.5 times; the other benchmark loans and deposit benchmark interest rates, and the personal housing provident fund deposit and loan interest rates are adjusted accordingly. 
Financial institution RMB deposit and loan benchmark interest rate adjustment table
Rate cut impact comment:
Li Dazhao, chief economist of Yingda Securities: slowing the decline of the stock market
The central bank cut interest rates, the purpose is to use strong measures to stabilize economic growth, help reduce corporate financing costs, and conducive to the stability of the real estate market, while having a very important impact on slowing down the pace and downturn of the stock market. But interest rate cuts do not change the basic fact that most stocks are absolutely overvalued in the global market.
Lu political commissar: monetary policy turns to actually loose
This marks a major shift in the monetary policy control thinking: the former "stable" operation turned to the actual "loose". This supports the decline in financing costs and the replacement of local debt. However, if interest rate cuts are not supplemented by liquidity easing, interest rate declines will be difficult to sustain. I therefore expect that the next phase of the central bank's policy will be "reversal", with normalized RRR or PSL down for more than 3 months. The interest rate of the term.
Central Bank Ma Jun: Cutting interest rates into stable growth should not be interpreted as quantitative easing
Ma Jun, chief economist of the Research Bureau of the People's Bank of China, believes that the interest rate cut is mainly due to the downward pressure on the economy. It is necessary to reduce the real interest rate and stabilize investment growth by lowering the nominal interest rate. He stressed that "this interest rate cut should not be interpreted as the Chinese version of quantitative easing (QE)." This time the deposit interest rate ceiling is directly expanded from 1.3 times the benchmark interest rate to 1.5 times, the main consideration is to prevent "inductive floating." ". It is estimated that due to the current liquidity, inflation and market interest rates tend to decline, most financial institutions will not use this 1.5 times upper limit.
Economist Teng Tai: The interest rate cut is not the Chinese version of QE
Economist, chairman of the Wanbo Brothers Asset Management Corporation, and Dean of the Wanbo Economic Research Institute, said that the interest rate cut is not the Chinese version of QE, which is to reduce social financing costs on the road. The downward trend of China's economy has not changed, and various indicators have not improved. The actual financing cost of enterprises is still more than twice that of Europe and the United States. It is necessary to continuously cut interest rates. At present, the interest rate cut is still insufficient, and the impact on the real economy will be reflected in the third quarter. The impact of a single interest rate cut on the stock market's short-term ups and downs is uncertain, but the impact of the interest rate cuts on the stock market is positive and certain.
Southern Fund Yang Delong: Interest rate cut is beneficial to the A-share market
Yang Delong, chief strategist of Southern Fund, commented on interest rate cuts: The central bank decided to reduce the interest rate of deposits and loans by 0.25% on May 11th. The time and magnitude of interest rate cuts are in line with market expectations. The recent unsatisfactory economic data released by the Bureau of Statistics in the first quarter and April prompted the central bank to adopt measures to cut interest rates to stimulate economic growth. This rate cut is very timely and necessary. It is expected that our economic growth rate will bottom out in the second quarter and slowly rebound in the second half of the year. During the economic transition period, the economic growth rate will inevitably decline to a certain extent, because some of the old growth engines are gradually weakening, and new growth methods have to be explored. We must adapt to this economic "new normal" and use time to change space to find New ways of economic growth.
Ye Tan commented on the interest rate cut: good for the high and handsome handsome large enterprises
Ye Tan pointed out that the current economic down cycle has begun, and interest rate cuts will have a certain impact on market psychology. Because the market has long been expected, there have been rumors a few days ago, the market has already digested a part. However, although the interest rate cut is good for large and wealthy large enterprises, the actual interest rate of small and medium-sized enterprises that need money is still relatively high.
Xiang Song: The RMB depreciation will not exceed 5% throughout the year
Xiang Songzhen, chief economist of the Agricultural Bank of China, said that the current renminbi objectively has a depreciation trend or demand, but the comprehensive depreciation of various factors will not exceed 5%. I don't think that speculative capital outflows will become a major force threatening China's financial stability. Even if the capital account is completely open, there is no need to worry about capital outflows.
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