Reduction of reserve requirements and interest rates signals released. Experts believe that there is still room for further reductions, but it is not a "flood irrigation" approach.

According to the current economic and financial situation, the People's Bank of China has opened its policy "toolbox" and announced the introduction of eight structural monetary policy measures, revealing that there is still "some room" for further reserve requirement ratio cuts and interest rate reductions this year. The market is closely watching the subsequent policies. In terms of the timing of the policies, Wen Bin, chief economist at China Minsheng Bank, judges that in order to prevent further overheating of asset prices such as the stock market, the possibility of a short-term interest rate cut has decreased. Currently, the People's Bank of China has many tools for monetary injection, with the implementation of targeted medium-term lending facilities having good effects, all of which have led to a lower probability of a short-term reserve requirement ratio cut. However, there are industry experts holding different views. Lou Feipeng, a researcher at China Postal Savings Bank, believes that considering that in 2025, non-loan financing such as bonds will account for over 50% of the incremental social financing scale, with around 50 trillion yuan of medium- and long-term deposits due in 2026, market expectations for a reserve requirement ratio cut in the first quarter have significantly increased. The peak of government bond issuances in January and liquidity shortage pressures further support the likelihood of a reserve requirement ratio cut. The macroeconomic research team at Oriental Gold Trust believes that the People's Bank of China is committed to constructing a scientifically sound monetary policy system, and will adhere to avoiding large-scale flooding to prevent hidden risks such as high inflation and high debt in the future. The current focus of monetary policy is to use various structural monetary policy tools effectively, make targeted actions, and continue to promote the transformation of new and old growth drivers. Therefore, it is basically ruled out that there will be significant interest rate cuts this year, or the implementation of large-scale quantitative easing.