500M yuan reverse repurchase hits a 10-year low, analysts say liquidity in April is expected to remain relatively loose

On the first trading day of April, the central bank triggered market attention with a “ground-breaking” operation: the central bank announced on April 1st that it conducted a 500 million yuan 7-day reverse repurchase operation, with a winning rate of 1.4%. Given that 78.5 billion yuan of reverse repos matured on the same day, the central bank achieved a net withdrawal of 78 billion yuan. This reverse repo operation scale was the lowest since 2015. Analysts believe that, against the backdrop of relatively loose liquidity, this signals the central bank’s intention to maintain stability and guide interest rates within a reasonable range. Overall, the liquidity environment will remain ample, but there is limited room for interest rates to continue to decline significantly. (Shanghai Securities News)