Experts say there may be 1 to 2 opportunities for reserve requirement ratio cuts or targeted reserve requirement ratio cuts this year.

In the context of a moderately loose monetary policy orientation, market participants believe that the timing of the use of quantitative policy tools should be chosen according to specific circumstances. According to Liangping, Chief Industry Research Officer and Chief Economist at Guangkai, the necessity for a significant reduction in reserve requirements has decreased, but it is still necessary to implement minor reductions of 0.25 to 0.5 percentage points at the appropriate time to effectively supplement the medium and long-term liquidity of the financial system. Yuan Haixia, Director of the Zhongchengxin International Research Institute, predicts that there may be 1-2 opportunities for reserve requirement cuts or targeted reserve requirement cuts this year, with the timing possibly in the middle of the year or the fourth quarter, such as during periods of high liquidity pressure, such as central government bond issuance or high MLF maturities.