J.P. Morgan Asset Management Jiang Xianwei: The policy Intrerest rate is already at a relatively low level, and the room for further interest rate cuts is relatively limited

Jiang Xianwei, senior global market strategist at JPMorgan Asset Management, said that next year's monetary policy will play more auxiliary functions to support the implementation of fiscal and real estate policies. Judging from the current level of real Intrerest Rate between China and the United States, Central Bank may still have room for further RRR and interest rate cuts to help increase market Liquidity and drop financing Intrerest Rate, and the scale of monetary policy tools such as MLF and PSL may also be rise to support the Liquidity of the banking system. In order to maintain the net Interest Spread of banks, deposit Intrerest Rate is expected to decline further. However, due to the fact that the current policy Intrerest Rate is already at a relatively low level, the room for further interest rate cuts is also relatively limited.