Central Bank Releases Positive Signals, RRR Cut Could Land in Q2

Insiders believe that the central bank once again released a positive signal that monetary policy continues to strengthen. Combined with the internal and external environment, the total policy space will be further opened. Targeted interest rate cuts for real estate may continue to advance. Structural monetary policy tools will be further relied on. Wang Qing, chief macro analyst at Oriental Jincheng, said that under the expectation of low price level, focusing on boosting domestic demand and supporting the resolution of local debt risks, the downgrade may land in the second quarter. Wang Qing believes that the monetary policy "toolbox" in lowering the threshold for home purchase, downward adjustment of residential mortgage rates there is more space. Among them, the next step is to lower the lower limit of the first and second set of residential mortgage interest rates. This means that even if the policy rate remains stable in 2024, targeted interest rate cuts for real estate will continue to promote.