China Securities Investment: Monetary Policy Remains Stable, but it Also “Increases Counter-cyclical Adjustments”

The China Securities Research Report pointed out that the monetary policy remains stable, but it also “increases counter-cyclical adjustments.”
The real estate policy remains stable, and it is unlikely to vigorously stimulate it. It is mainly limited to the two aspects of first-home and improved demand.
In terms of the exchange rate, the central bank added “resolutely guard against the risk of sharp fluctuations in the exchange rate”, indicating that the depreciation of the exchange rate may have been highly concerned by the central bank.
In the future, after lowering the upper limit of agreement deposit and notice deposit interest rates, and the benchmark loan interest rate LPR, etc., the linkage between deposit and loan interest rates will be significantly enhanced, and the follow-up work of the central bank to stabilize growth will strike a balance between economic growth and bank risks.
In terms of the impact on the currency interest rate, the current interest rate position is already low.
In the short term, the economic data and policy interest rate cuts of the interest rate bull game have been realized one after another. The current monetary policy environment and liquidity environment that continue to participate in the interest rate debt game have pointed to the direction of reducing odds.