As the year-end approaches, stainless steel dealers are shedding tears over the "capital gate". With sluggish sales of stainless steel and bank loan settlements, the capital chain of the stainless steel industry is already tight at the end of the year. Coupled with the sharp decline in the stainless steel market due to macroeconomic impacts this year, the stainless steel industry is facing a "life or death" test. Although they want to celebrate the New Year, they feel powerless to change the situation. Despite trying every possible method, they cannot bear to give up.
Just as everyone is worried about the cash flow, on November 26th, the People's Bank of China decided to significantly reduce the RMB deposit and loan benchmark interest rates and the reserve requirement ratio for financial institutions: starting from November 27, 2008, the one-year RMB deposit and loan benchmark interest rates for financial institutions will be reduced by 1.08 percentage points each, and other term categories of deposit and loan benchmark interest rates will also be adjusted accordingly. At the same time, the central bank's rediscount rate and other interest rates will also be reduced. Starting from December 5, 2008, the RMB reserve requirement ratio for large deposit-taking financial institutions such as the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, Construction Bank of China, Bank of Communications, and Postal Savings Bank will be reduced by 1 percentage point, and the RMB reserve requirement ratio for small and medium-sized deposit-taking financial institutions will be reduced by 2 percentage points. (For more details, please refer to: The central bank's rare significant reduction in both rates benefits the stainless steel industry.)