Expert: The pace of monetary easing may accelerate in the second half of the year, and there is room for reserve requirement ratio cuts and interest rate cuts to be implemented.

On June 17th, Jinshi Data reported that the MLF interest rate remained unchanged, which means that there is no downward pressure on the loan market quoted interest rate (LPR) in June. However, with the gradual easing of internal and external constraints, interviewed experts unanimously believe that the necessity of using macroeconomic policy tools to stimulate domestic demand and promote moderate price increases still exists. With the gradual easing of internal and external constraints, the pace of monetary easing in the second half of the year may accelerate, and there is room for reserve requirement ratio cuts and interest rate cuts to be implemented. Wen Bin, Chief Economist of Minsheng Bank, predicts that in order to reduce financing costs and maintain stable net interest margins for banks, deposit rates still need to be further lowered, which may be implemented as early as mid-year to the third quarter, thereby opening up space for LPR reductions.
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