Does The Central Bank Reduce The Deposit Reserve Ratio And Affect The Textile And Garment Industry?

The central bank has decided to reduce the RMB deposit reserve ratio of financial institutions by 0.5 percentage points since February 5th, thereby reducing the size of large financial institutions from 19.5% to 19.5%. The small and medium financial institutions will be reduced from 16% to 16%. Meanwhile, the cities and commercial banks and agricultural banks and other institutions will be targeted. The Pudong Development Bank and Minsheng Bank have fallen 1 percentage points, and the Agricultural Bank has fallen 4.5 percentage points.

This time, the first step to take the reduction and the directional reduction is the second innovation of monetary policy tools. Then, what is the signal that the central bank once again dropped sharply in the past three years?

How much impact will it bring?

First, this will significantly increase market liquidity and make a positive contribution to the textile market.

Capital is the blood of enterprises. This reserve rate will be released by 0.5 percentage points, which will release more than 500 billion yuan of capital, plus directional reduction and additional reduction. The total amount of funds released will be more than 650 billion yuan.

The intention is to guide the downward trend of interest rates through the increase in liquidity. Especially in the current situation of textile, clothing, iron and steel, chemical enterprises and other entities are generally faced with capital turnover difficulties, will ease the problem of "loans difficult to loan".

Second, the steady growth of the new normal is the main keynote in 2015, and the textile market is stabilizing and recovering gradually.

According to the data released by the National Bureau of statistics in January 20th, China's gross domestic product (GDP) reached 636463 billion yuan in 2014, the first time it exceeded 60 trillion yuan, and the annual GDP growth rate was 7.4%. Although the economy remained stable in 2014, the growth rate reached a 24 year low.

The four quarter of 2014 grew by 7.3% in the first quarter of this year, which is worse than the fourth quarter of last year. It is expected to be around 7.1%. The pressure on the current economy to enter the new normal has increased. Combined with the November 2014 interest rate cut and the sharp drop in the standard and the new batch of infrastructure projects approved by the NDRC, we can see that in 2015, steady progress has been made.

Facing the complex and changeable international environment and hard domestic reform and development tasks, the steady growth of textile and garment economy in 2015 is equally urgent, and how to maintain stable operation in the new normal is on the agenda.

Under the stimulation of many factors, recent domestic

Polyester and viscose, etc.

Prices have basically bottomed out, some of the prices have rebounded, especially in some medium and high count yarn, bleached high quality yarn and grey fabric products, and there has been a marked rebound trend.

To sum up, at the end of last year, with the interest rate cut and the reduction of the policy, and the depreciation of the RMB and the expectation of the traditional peak season, the textile market fundamentals in 2015 are expected to improve slightly, and the trend of market stabilization and recovery is gradually clear.

However, the effect of RRR on reducing the direct financing cost of enterprises is limited. The two quarter is still expected to reduce the cost of financing through the two rate cut.