央行：维持基础货币合理充裕状态

Core Viewpoint - The People's Bank of China (PBOC) has implemented a 400 billion yuan Medium-term Lending Facility (MLF) operation and a 20 billion yuan reverse repurchase operation, both with a reduction in interest rates, indicating a continued effort to maintain liquidity in the banking system while responding to economic pressures [1][2][3]. Group 1: Monetary Policy Actions - The MLF operation and reverse repo rates were reduced by 10 basis points to 2.75% and 2.0%, respectively, marking the second interest rate cut of the year [1]. - The MLF scale was reduced by 200 billion yuan, which aligns with market expectations and suggests that the central bank aims to avoid signaling an overly tight monetary policy [1][2]. Group 2: Economic Context - Since April, the market liquidity has remained ample due to coordinated monetary and fiscal policies, leading to a decline in major market interest rates [2]. - The manufacturing PMI fell by 1.2 percentage points to 49% in July, indicating a contraction in the manufacturing sector and reflecting weak financing willingness in the real economy [3]. Group 3: Future Monetary Policy Direction - Analysts expect the PBOC to employ more structural tools for targeted support, particularly for small and medium-sized enterprises, the real estate sector, and other key areas [4]. - The reduction in MLF rates is anticipated to influence the Loan Prime Rate (LPR), with a higher probability of a decrease in the LPR, especially for terms longer than five years [3].