"Historically, when the central bank mentioned 'moderate easing,' both reserve requirement and interest rate reduction tools were significantly leveraged," said Mingming, the chief economist at CITIC SEC. He noted that the central bank has recently emphasized 'timely reserve requirement and interest rate reductions,' which indicates that there is still room for the use of these two tools while reflecting that the timing of their implementation may become more flexible. Mingming believes that the central bank's main consideration may still be the stability and ample liquidity in the interbank market. Considering the expansion of the deficit ratio, especially with increased special treasury bond supply combined with the demand for local debt, it is expected that the funding environment may face considerable fluctuations, and the central bank may use the reserve requirement reduction tool during the concentrated issuance phase of government bonds.