Sheng Songcheng, the director of the Department of Investigation of the People's Bank of China, wrote that with the decline of the low base effect, China's economic growth may slow down to 5 to 6%in the second half of the year.The important window period of appropriate reduction of interest rate levels; currently a good time for reasonable and moderate interest rate cuts.
According to Reuters, the Chinese bond market has risen strongly on Wednesday afternoon, which once rose by more than 0.4%, and finally closed up 0.38%.The rate of interest rates of interest rate bonds is about 3bp (base point).
Traders analyzed that former central bank officials Sheng Songcheng's remarks about interest rate cuts have a significant impact on the market emotion in the afternoon; however, considering the current actual situation of the real economy, the market is still large.
Sheng Songcheng's article published in the public account of the economist circle wrote that the foundation of China's economic recovery is not solid, and the problems of imbalanced development and inadequate development are still prominent.The domestic and foreign environment is complicated and severe, the domestic demand is slow, and the growth of foreign demand is uncertain. SMEs still face great difficulties.
The article reads: "At present, the moderate interest rate cut in my country can reserve space for the future to raise interest rate increases in order to cope with possible future RMB depreciation and domestic inflation increase." Sheng Songcheng believes that the slowdown in China's economic growth in the second half of the year still requires monetary policy. support.
Article analysis pointed out that reasonable and moderate interest rate cuts can help alleviate the pressure of local governments to repay the principal and interest, reduce the financing costs of the real economy, especially small and medium -sized enterprises, and also help increase investment, increase income, and promote consumption.
