盛松成：降息仍有空间

Group 1 - The core viewpoint of the article emphasizes that China's monetary policy is shifting towards reserve requirement ratio (RRR) cuts instead of aggressive interest rate reductions, aiming to protect bank interest margins and maintain indirect financing channels while allowing for gradual interest rate decreases and innovative structural tools to stabilize finance and promote transformation [2] Group 2 - Since 2016, China has adjusted the RRR 23 times, all downward, with the RRR for large deposit-taking financial institutions decreasing from 17.5% to 9.0%, a total drop of 8.5 percentage points [3] - The policy interest rates have only been adjusted 14 times since 2016, indicating a preference for RRR cuts over significant interest rate reductions [3][4] - The net interest margin for commercial banks has decreased to 1.42%, the lowest in history, highlighting the importance of maintaining this margin for the stability of the banking sector [4] Group 3 - RRR cuts will increase the funds available for commercial banks, enabling better support for proactive fiscal policies, as approximately 68% of national debt and 75% of local government debt are held by commercial banks [5] - The effectiveness of monetary policy is largely dependent on the cooperation of commercial banks and the financial system, especially given the low excess reserve ratio in China [5] Group 4 - There is still room for interest rate cuts in China, but the low elasticity of consumption and investment to interest rates limits the effectiveness of sustained large cuts [6] - The decrease in interest rates has led to a reduction in household deposits, with a drop of 1.11 trillion yuan in July, indicating a significant relationship between declining interest rates and reduced household savings [6][7] - Structural monetary policy tools have been increasingly important, with innovations supporting weak economic sectors and key areas such as technology innovation and green development [7]