“三部门”组合拳再现，这次不一样

Monetary Policy Measures - The central bank announced a comprehensive monetary policy package, including a 50 basis point (bp) reserve requirement ratio (RRR) cut, releasing approximately 1 trillion yuan in liquidity[3] - The 7-day reverse repurchase rate was lowered by 10bp to 1.40%, with the Loan Prime Rate (LPR) also adjusted downwards by 10bp[13] - The new re-lending policies include an increase of 1.1 trillion yuan in quotas, with 300 billion yuan allocated for technological innovation and 500 billion yuan for agriculture and small enterprises[4] Economic Outlook and Market Response - The interest rate cuts were less than previously anticipated, with expectations of 30-40bp reductions over the year, but the first cut was only 10bp, implemented quickly on May 8[2] - The current monetary policy reflects a cautious approach towards external uncertainties, particularly regarding US-China negotiations, leaving room for future adjustments[2] - The bond market showed a steepening yield curve, with short-term rates declining by 1-3bp while long-term rates increased by 1-3bp, indicating a shift in investor sentiment[7] Structural Support and Future Implications - The meeting emphasized the importance of structural monetary tools, with a focus on supporting consumption and technological innovation, indicating a shift from broad-based measures to targeted interventions[5] - The central bank's actions are seen as preemptive measures against external shocks, suggesting that the recent cuts may only be the beginning of a broader easing cycle rather than a conclusive end[5] - The emphasis on long-term capital market support aims to stabilize market expectations and prevent prolonged downturns, with a focus on enhancing the participation of institutional investors[9]