This month, the rare decrease in volume of buy-back repurchase agreement continues, experts say the timing for RRR cut may not be far away.

Wang Qing, Chief Macro Analyst at Orient Securities, believes that the reduction in the volume of buyback-style reverse repos may be related to the net injection of liquidity amounting to as much as 1.9 trillion yuan in the first two months of the year, as well as the continued abundance of funds after the Spring Festival. At the same time, this may also indicate that a reserve requirement ratio cut is not far off. Looking at the situation from last year, after a net withdrawal of 500 billion yuan from buyback-style reverse repos in April 2025, a reserve requirement ratio cut followed in May. Next, it is important to closely monitor the monetary policy signals released by MLF operations in March.