What is the impact of the central bank s RRR cut on us?

What is the impact of the central bank's comprehensive RRR cut on the market.

The central bank's RRR cut means that the People's Bank of China has lowered the deposit reserves of all commercial banks in the market with the central bank. This reserve is a reserve that every bank must deposit in the central bank, and this regulation of the central bank is mainly to prevent unexpected situations in various commercial banks, such as when there are major losses, and as a result, the money stored in the bank cannot be withdrawn。For example, if a common person deposits 100 yuan in a commercial bank, the commercial bank must deposit 10 yuan to the ** bank, which is called reserve.

Now that the People's Bank of China has reduced this ratio, it can save a little less, which means that commercial banks can take more money to lend or engage in other operations.

For us ordinary people, there are mainly the following effects.

The first effect is that it will bring domestic prices**.

In the past, the People's Bank of China charged 10 yuan, but now it only charges 5 yuan, then the extra 5 yuan will enter the market, and there will be more money in the market, then it will cause prices **, in the words of our ordinary people, that is, money is becoming less and less valuable. In the past, you could buy a lot of things with 10 yuan when you went out, but now you may not be able to buy much at all with 100 yuan, which is the result of more money in the market.

Second, the impact can encourage ordinary people to start businesses and encourage small and medium-sized enterprises to expand their business scale.

Because the People's Bank of China has released more than 800 billion yuan to the market this timeThere must be a place for this money, and many banks will use this money to lend, and most of the main groups of loans are people who want to start a business and entrepreneurs who have already started a business and lack new funds. So with this money, these people can start a business, and those who have already started a business can alleviate their financial crisis or expand their scale.

The third effect is that it is conducive to the decline of mortgage interest rates.

Because our mortgages in China are calculated according to the LPR index, there is more money in the marketThis interest rate will have a downward trend, and the result of this trend will be transmitted to home buyers, that is, the monthly repayment pressure will be reduced

After the RRR reduction is implemented, a certain amount of funds can be released to commercial banks, and this part of the funds will be issued to enterprises or entrepreneurs in the form of loans, which is very beneficial to the development of the real economy. Effectively reduce the actual cost of social financing. Whether the reserve requirement ratio is lowered or not is generally adjusted by the People's Bank of China in light of economic development.

The RRR cut has a positive impact on the central bank, and the central bank will release liquidity when the RRR cut will release liquidity, and then the funds will enter the market, and the risk will be pushed up, but whether it needs to be affected by many aspects, and it is necessary to analyze other information after the RRR cut, and cannot rely on a single information to analyze the trend.

The central bank's RRR cut refers to the reduction of the amount of deposit reserves of commercial banks in the central bank, and the amount of funds that people can borrow in commercial banks in the end has increased, and enterprises can develop better.

Lower the interest rate on the money deposited by banks with the BOC. This part of the money is to prevent the bank from having an accident and the person who saved the money is unable to repay it.

When ordinary people save money, the interest rate on some bank deposits will be raised.

Dear I'm honored to have your question, the RRR cut refers to the reduction of the bank reserve ratio, the reserve ratio is a certain ratio of the central bank that the central bank stipulates that commercial banks should deposit in the central bank according to their cash holdings, and the RRR cut will have a far-reaching impact on the banking industry, residents, enterprises, employment, and national economic growth, which can increase interest income and thus increase profits. To put it simply, other conditions remain unchanged, the RRR cut will lead to more money for banks, and banks can use more money in their hands to lend and charge more interest, which will directly lead to an increase in the bank's main business income and profits; Secondly, it can improve the profit margin of enterprises and promote household consumption, because the bank can borrow more funds, and the interbank lending funds will also increase, which will lead to a decline in the cost of bank funds, and then pass on to the enterprise loan interest rate will be relatively low, the cost of enterprise capital use will decrease, and the rational use of financial leverage enterprises can obtain higher profit margins. At the same time, when banks have more loanable funds, they will begin to launch activities such as credit consumption and credit card interest discounts.

Hello, one of the most direct effects of the central bank's RRR cut is housing loans, after the central bank's RRR cut, the bank's stolen funds have increased, and more or less some funds will flow into the housing loan market, which can alleviate the problem of difficult mortgage applications to a certain extent;

On the other hand, the central bank's RRR cut can bring good results, and the impact on the first is mainly through two aspects, one is that the RRR cut is good for enterprises, and the good situation of enterprises may often bring good performance or holes, which will indirectly affect the first place; Second, after the RRR cut, there will be some capital inflow, which can bring new funds to **.

1.The RRR cut will make the bank's funds abundant, which is naturally good for bank stocks;

2.While the RRR cut makes the bank's capital loose, it is also good for real estate stocks, so it is also good for real estate stocks;

3.According to the central bank's calculations, the targeted RRR cut can release about 400 billion yuan of long-term funds, and the average of small and medium-sized banks can obtain long-term funds of about 100 million yuan, effectively increasing the stable funds of small and medium-sized banks to support the real economy**, and can also reduce the cost of bank funds by about 6 billion yuan per year.

Extended Materials. 1. What is RRR reduction?

1) RRR reduction is to reduce the statutory deposit reserve ratio, residents or enterprises (assumed to be A) usually in the bank (assumed to be bank A) deposit money need to open a deposit account, commercial banks in the central bank deposit also need to open a deposit account, unlike our ordinary bank deposits, commercial banks in the central bank deposits are mandatory, generally divided into statutory deposit reserves and excess deposit reserves, the former is the minimum deposit limit of commercial banks in the central bank prescribed by law, The latter is the part of the funds that commercial banks have in excess of the statutory reserve requirement in the central bank's deposits.

2) For example, if the statutory reserve ratio of Bank A is 20%, if Bank A deposits 100 RMB in Bank A, then Bank A needs to deposit at least 100 RMB 20%=20 RMB into the reserve account of the central bank, and the remaining 80 yuan can be used as its own liquidity. Of course, Bank A can deposit 21 yuan in the central bank's reserve account, and the extra 21 yuan (total reserves) - 20 yuan is (statutory deposit reserves) = 1 yuan, which is the excess deposit reserve of bank A.

2. The central bank's RRR cut means to reduce the statutory reserve ratio of commercial banks, for example, it was originally 20%, but now it has been reduced to 19%, so what will happen?

1) It means that the minimum deposit of 100 yuan absorbed by bank A in the central bank has been reduced from 20 yuan to 19 yuan, in other words, the liquidity available to bank A has risen from the original 80 yuan to 81 yuan.

2) But what you need to know is that at the end of August 2018, the balance of Chinese RMB deposits was trillion yuan, if even if it is only a RRR cut, do you know what it means? After this RRR cut, the person in charge of the central bank has told you that the liquidity released by this RRR cut is 1.2 trillion yuan.