The RRR cut will devalue bank deposits. RRR's interest rate reduction refers to lowering the deposit reserve and putting monetary funds into the market, which will increase the amount of funds in the market and make the money worthless. Investors will take out funds to increase consumption, or look for high-yield investment targets, such as stocks, precious metals and futures.

RRR interest rate cut is a loose monetary policy, which will increase the credit scale, money supply and market liquidity, and also stimulate market economic growth. Deposit reserve is the funds prepared by commercial banks to cope with investors' withdrawal and liquidation. Commercial banks deposit some funds in the central bank every year, which is called deposit reserve.