By adjusting interest rates, the supply and demand for social funds can be affected. As an important economic lever, it plays a very important role in the national macro-control system.

Interest rate policy is an important part of my country's monetary policy and one of the main means of implementing monetary policy. According to the needs of the implementation of monetary policy, the People's Bank of China uses interest rate tools in a timely manner to adjust the interest rate level and interest rate structure, thereby affecting the supply and demand of social funds and achieving the established goals of monetary policy.

Interest rate policy has become the main means for central banks in various countries to control currency supply and demand, and then to regulate the economy. When the economy overheats and inflation rises, interest rates will be raised and credit will be tightened; when the overheated economy and inflation are under control, interest rates will be appropriately lowered.

Extended information

The main interest rate tools used by the People's Bank of China are:

1. Adjustment of the central bank's benchmark interest rate, including:

(1) Re-lending interest rate refers to the interest rate used by the People's Bank of China to issue re-loans to financial institutions;

(2) Rediscounting interest rate refers to the discounted bills held by financial institutions to the Chinese people. The interest rate used by banks for rediscounting;

(3) Deposit reserve interest rate refers to the interest rate paid by the People's Bank of China on statutory deposit reserves deposited by financial institutions;

( 4) The excess deposit reserve interest rate refers to the interest rate paid by the central bank to the portion of reserves deposited by financial institutions that exceeds the statutory deposit reserve level.

2. Adjust statutory deposit and loan interest rates of financial institutions.

3. Formulate the floating range of deposit and loan interest rates of financial institutions.

4. Formulate relevant policies to adjust various interest rate structures and grades.

Reference materials: Baidu Encyclopedia_Interest Rate? People's Bank of China_Overview of Interest Rate Tools