$BNB , but next there is also a Federal Reserve meeting, and the key is still to see Powell's attitude in his speech.
Let's talk about our situation, there are several core data points:
First, the deficit rate is set at 4%. Previously, we mainly focused on 3%, which is the first time in recent years that the deficit rate has been increased. To explain, this indicates that the government is willing to take responsibility, meaning they are willing to inject liquidity.
Second, the inflation target is set at 2%. Previously it was 3%, but now the monthly CPI is around 0.x, making the 3% target too distant.
This adjustment of the target is a positive sign, indicating that the higher-ups have recognized the issues and are facing them. This is a significant positive development.
Third, the issuance of 1.3 trillion in special national bonds, which is slightly less than market expectations, but there is a noteworthy point: this time, 500 billion was issued to support state-owned large commercial banks in replenishing their capital.
There are rumors about rescuing the banks, and this move has landed. Why do banks, which are making such large profits every day, still need to issue bonds to them? Because while banks are profitable, they also bear the huge risk of real estate. Rescuing the real estate sector is too difficult, so it is better to support the banks as a backup.