BOC International's Global Chief Economist Guan Tao recently stated that the market has great expectations for the reintroduction of further MMF easing after 14 years, but it is necessary to avoid excessive interpretation of moderately loose MMF policies. Guan Tao mentioned that the Central Economic Work Conference referred to 'timely reserve requirement ratio and interest rate cuts', and did not propose 'to lower the reserve requirement ratio and implement substantive interest rate cuts' like the Central Political Bureau meeting. Furthermore, during a meeting to convey the spirit of the Central Economic Work Conference, the People's Bank of China (PBOC) pointed out to 'strengthen the execution and transmission of interest rate policies and promote a steady decline in the overall financing costs for society.' 'However, currently, the market appears to be anticipating MMF easing prematurely, overextending the Bullish sentiment for moderately loose MMF.' Guan Tao indicated that the People's Bank of China has repeatedly issued warnings about the unilateral downward risk of long-term interest rates. At present, this risk does not seem to have subsided; rather, it has further spread. (Shanghai Securities News)