Summary of Mr. Bao's speech in the early morning

1: Inflation is now closer to the target, but still somewhat high.

Implied meaning: Inflation shows signs of rebounding compared to before.

2: The labor market is not the source of inflationary pressure.

Implied meaning: You can guess the real reason; as long as I don’t say it, I have a reason.

3: We do not need to rush to adjust the policy interest rate.

Implied meaning: Let’s wait to see the boss’s opinion; the gods are fighting, I’ll just wait.

4: Discussions on the policy framework have begun in this meeting.

Implied meaning: We greatly respect Brother Trump’s ideas, but we need time to understand Brother Trump’s thoughts; we expect to fully understand them by the end of summer.

5: Substantial progress on inflation or weakness in the labor market is required before considering an interest rate cut.

Implied meaning: We only look at the data; no need to try to pressure us with power.

In short, the interest rate cut-driven market is not there; we still need to look at the fundamentals.