The so-called RRR cut is to reduce the deposit reserve ratio. After the RRR cut, the deposit reserve required by commercial banks in the central bank has decreased, which means that the available funds of commercial banks have increased. So, what impact does RRR's interest rate cut have on bonds and foundations?

What is the impact of RRR interest rate cuts on bond funds?

1, after RRR cuts, the monetary policy will be more relaxed, the bank interest rate may be lowered, and the income of bond funds will also decline;

2. After 2.RRR cuts, if the funds flow to the stock market, it will be unfavorable to the bond market;

3. After 3.RRR cuts, the bond interest rate will drop, but the bond price will rise. If RRR cuts interest rates for a long time, the total income of bond funds will increase.

Reducing RRR is a policy introduced by the central bank, which means reducing the deposit reserve ratio. The reduction of RRR can affect banks and large financial institutions and promote economic growth. From 2065438 to 2009, the central government began to prepare the RRR reduction policy, implemented a prudent monetary policy and lowered the interest rate level.

RRR cut is a double-edged sword. The fact that the central bank can implement RRR interest rate reduction policy proves that the central bank has the initiative to China's economy, will not be interfered by the outside world, and can make all banks compete more fairly. But the disadvantage is that the policy of reducing RRR will make banks unable to bear too much reserves, make the operation of banks more difficult, increase risks, and the policy of reducing RRR is irreversible.