Key investment points:
China's monetary and fiscal policy
Reverse repo: the central bank announced that in order to maintain stable liquidity at the end of the quarter, a 7-day reverse repo operation of 150 billion yuan was carried out by means of interest rate bidding on March 31, with a bid winning interest rate of 2.10%. On the same day, the 20 billion yuan reverse repurchase expired, so the net investment on the same day was 130 billion yuan. (issued by the central bank)
Monetary policy: the monetary policy committee of the central bank held a regular meeting in the first quarter. The meeting proposed that we should make progress while maintaining stability, strengthen cross cyclical and counter cyclical regulation, strengthen the implementation of prudent monetary policy, enhance foresight, accuracy and autonomy, give full play to the dual functions of the total amount and structure of monetary policy tools, respond actively, boost confidence, provide stronger support for the real economy and stabilize the macro-economic market. We will further dredge the transmission mechanism of monetary policy, maintain reasonable and sufficient liquidity, enhance the stability of the growth of total credit, keep the growth rate of money supply and social financing basically match the economic growth, and keep the macro leverage basically stable. (issued by the central bank)
Overseas monetary and fiscal policy
[Federal Reserve] George of the Federal Reserve said that the size of the Federal Reserve's balance sheet needs to be significantly reduced; It is appropriate to raise interest rates to neutral as soon as possible; Soft landing is possible, but not guaranteed; As the Fed monitors the impact on the economy, inflation and demand, the policy interest rate may be raised in a "stable and prudent" manner. The Fed's policy must be decisive and cautious, and will set the neutral interest rate at about 2.5% as the "starting point".
[European Central Bank] European Central Bank Management Committee visco said that interest rates would not be raised until the net purchase of the asset purchase plan was completed.
Risk tip: the epidemic spreads beyond expectations, overseas tightens beyond expectations, and global inflation intensifies
