Insiders: The routine delay of MLF operations will strengthen the policy status of 7-day reverse repurchase Intrerest Rate.

Golden Ten Data reported on August 27 that with the announcement issued by Central Bank on August 15, the MLF expiring on that day will be renewed on August 26, and the MLF operation time point is expected to be routinely postponed to become the market consensus. In the opinion of many interviewed experts, this move will strengthen the position of the policy Intrerest Rate of the 7-day reverse repo Intrerest Rate, and straighten out the transmission mechanism from the short-end Intrerest Rate to the long-end Intrerest Rate. Regarding this month’s MLFIntrerest Rate, Wang Qing believes that the current MLF operation Intrerest Rate as a policy Intrerest Rate has faded. From the perspective of Liquidity, near the end of the month, factors such as the net payment of government bonds and the maturity of more than one trillion yuan of reverse repo will still disturb Liquidity. Wen Bin said that towards the end of August, an appropriate amount of MLF sequels will help maintain liquidity. The routine delay of MLF operation helps to better smooth out the liquidity disturbance at the end of the month and the end of the quarter.