Many people expect RRR cuts and interest rate cuts, but in fact there is no shortage of liquidity in the market. The financial policies in recent years are as follows:

In 2020, the reserve requirement ratio was lowered three times, releasing 1.8 trillion yuan in funds.

In 2021, the reserve requirement ratio will be lowered twice, releasing 2.2 trillion yuan in funds.

In 2023, the reserve requirement ratio will be lowered twice, releasing 1 trillion yuan in funds.

In 2024, the reserve requirement ratio will be lowered once, releasing 1 trillion in funds.

At the same time, the money supply (M2) has grown by approximately 60% from 2019 to now, while GDP growth during the same period has only been approximately 28%. This shows that currency growth is much faster than economic growth.

Despite the increase in money supply:

1. Prices did not rise significantly, and even declined.

2. The stock market did not see a sharp rise, and the overall performance was dismal.

3. The property market did not rise, but continued to decline.

This begs the question: Where does all this freed-up money go?

By 2024, bank deposits will exceed 300 trillion, a significant increase from approximately 200 trillion at the end of 2019. This shows that there is no shortage of money in the market.

These situations make people think about whether cutting RRR and interest rates alone can really solve all liquidity problems? This is a question worth exploring in depth.