Recently, the People's Bank of China (the central bank) announced that it will reduce the deposit reserve ratio of financial institutions on 202 1 12 15, which is the second RRR cut this year after the RRR cut in July. The impact of RRR reduction on the stock market has been briefly analyzed in the previous article. Interested parties can click on the relevant links at the end of the article to learn more. So, is the RRR cut good or bad for futures? What's the impact? Let's have a look.

Is RRR cut good or bad for futures?

RRR decreases, that is, the central bank reduces the deposit reserve ratio of other commercial banks, and the increase of funds in the market can increase the activity of the market. It must be said that RRR interest rate cuts are good for the real economy and the development of upstream and downstream industries. Judging from the actual data, after the news was released, the futures market directly opened higher and went higher, rising all the way.

Generally speaking, RRR's interest rate reduction can alleviate the bank's liabilities to a certain extent, so it is a bullish interest rate bond market, which can provide some support for futures prices. In addition, the RRR cut will allow more funds to flow into the market, thus alleviating the current shortage of funds in the market and, most importantly, boosting investors' information. These factors can stimulate futures prices in a short time.

But under the short-term influence of this news, we can't ignore the current futures market. For example, this RRR cut is a concern about the current economic downturn. From the long-term and macro trends, demand is weak and there is still pressure on the demand side. Therefore, even if RRR reduction is beneficial to futures as a whole, we can't ignore the long-term market environment and the individual market conditions of futures products.

Related links: What does the RRR cut mean for the stock market?