Authoritative expert: Timely interest rate cuts are a powerful measure to support stable employment, stable enterprises, stable markets, and stable expectations.

Authorities have expressed that this interest rate cut is a positive implementation of the requirements set forth at the Central Political Bureau meeting. During the meeting on April 25, the Central Political Bureau called for the "accelerated implementation of more proactive macroeconomic policies, making good use of more proactive fiscal policies and moderately loose monetary policies" and "timely lowering of reserve requirements and interest rates, maintaining ample liquidity, and providing stronger support for the real economy." By announcing the interest rate cut at a press conference, People's Bank of China Governor Pan Gongsheng fully embodies the stance of a moderately loose monetary policy, which is a strong measure to support stable employment, stable enterprises, stable markets, and stable expectations. "The interest rate cut fully demonstrates an increase in counter-cyclical adjustment efforts." The experts mentioned above stated that this interest rate cut not only lowered policy rates, but also reduced rates for loans supporting agriculture and small businesses, as well as housing provident fund loans. It is expected that the decrease in policy rates will guide market loan rates and deposit rates to also decrease in sync, which will help maintain the stability of commercial banks' net interest margins. Additionally, through the transmission of interest rates, the comprehensive financing costs for the real economy will effectively decrease, reinforcing the economic fundamentals.