Why the central bank to restart the 14 day reverse repurchase market interpretation of large differe-vidown

The central bank to restart the 14 day reverse repo market – large differences in interpretation of why financial Sohu after half a year, the central bank once again launched the open market 14 days reverse repo, the central bank announced early to routine use of short-term liquidity management tools, cautious RRR cuts in the background, it was very common. Interestingly, the news was announced, in the market Mottaki, a variety of pre speculation come in a throng the opposite point of view, many of them. Since the end of last year, the central bank began to frequent use of reverse repurchase, MLF (standing lending facilities), SLF (short-term lending facilities) and other short-term liquidity adjustment tool, so far this year only at the end of February had a drop, and the last time to cut interest rates or in the last year. According to the official explanation, this adjustment is to increase the flexibility of monetary policies, while avoiding the flood irrigation method asset bubbles, to guide the funds into the real economy. This practice in the Spring Festival this year was the most obvious, then in the new year disturbance factors, capital is extremely unstable, the central bank almost daily, through a variety of tools to hedge liquidity, the resumption of the 14 day period is inverse in that period, in addition to appear on a repo, 28 days of varieties at that time, also be used repeatedly. Since then, the funds gradually smooth, the central bank began to reduce the intensity of the operation, 7 days a day to reverse repo liquidity, capital constraints, increase the amount of reverse repurchase, net based, or vice versa, the main net return. The intention of the central bank seems to have been very clear, will not easily cut RRR cut, but as long as the volatility of liquidity, will be timely care. This time, after half a year to restart the 14 day repo, combined with the current tight money situation, the most direct purpose is to hedge liquidity, short-term funds face stability. But the reaction in the market is far more than that. Many institutions to make a deeper guess that the extension of the repurchase period is to reverse the short-term cost of capital, so as to achieve the purpose of the bond market deleveraging, equivalent to a disguised interest rate hike. Coupled with rumors that the central bank’s window to guide the bank to reduce overnight funding melt, as far as possible to melt the long-term funding, this signal is strengthened. However, it was also pointed out that this speculation is over interpreted, which is just a normal open market operations, the purpose is to hedge liquidity. Through the open market deleveraging is neither realistic nor feasible. If contact with regulators in recent years in all aspects of the performance of the financial deleveraging, it is not difficult to understand the market will restart the 14 day reverse repo to make all kinds of speculation. In this context, market participants such as "emotional, very easy to be a badly frightened person" guide. In fact, it is not important to debate whether the central bank itself is a move, deleveraging is already established clear direction. The value of the note is that monetary policy from a comprehensive easing to short-term flexible adjustment, whether to achieve the purpose of the central bank? In the maintenance of the operation of 7 days a day for half a year reverse repurchase case, why not in a special factor and inter – annual cross – section and other factors when the disturbance, the need to start the 14 day reverse repo? Analysis of these six months to the market liquidity changes can be found, the central bank every time.相关的主题文章: