Open Source Securities chief macroeconomic analyst He Ning: There is still room for timely reserve requirement ratio cuts and interest rate cuts this year.

On March 6th, He Ning, the chief macroeconomic analyst at Kaiyuan Securities, interpreted the government work report. He stated that the monetary policy will continue to be "moderately loose," with room for timely reserve requirement ratio cuts and interest rate reductions to support domestic demand, technology, and small and medium-sized enterprises. The government work report mentioned "flexibly and efficiently using various policy tools such as reserve requirement ratio cuts and interest rate reductions" to promote comprehensive social financing costs to remain at a "low level." The necessity and urgency of monetary easing have converged in the expression, but there may still be a need for action when necessary. When necessary, reserve requirement ratio cuts and interest rate reductions may be implemented at the right time, with an expected reserve requirement ratio cut space of 50-100 basis points and an interest rate reduction of 10 basis points. The government work report also stated "optimizing innovative structural monetary policy tools, appropriately increasing the scale, and improving the implementation methods," with an expectation of increased support through structural monetary policy, including expanding domestic demand, technology, and small and micro enterprises.