The People's Bank of China increased the amount of reverse repos before the holiday, and experts say the likelihood of implementing a reserve requirement ratio cut in the short term has decreased

According to a report by the Securities Daily, regarding the People's Bank of China's increased use of reverse repos before the holiday, the market believes that with the large-scale liquidity injection, the urgency and possibility of implementing a reserve requirement ratio cut in the short term, especially before the Spring Festival, have decreased. Dong Ximiao, chief economist at Zhongan, stated that the People's Bank of China is currently more focused on improving the efficiency of existing policies rather than simply increasing them. After increasing liquidity through various monetary policy tools, they will first observe the effects and temporarily avoid using total tools like reserve requirement ratio cuts. Regarding the 300 billion MLF maturing on February 25, Wang Qing, chief macro analyst at Dongfang Jincheng, expects that the central bank will continue MLF at the same amount or with a slight increase