It refers to the behavior of the central bank of a country or region to raise interest. Slow economic growth.

Raising interest rates by the central bank will increase the cost for commercial banks to borrow from the central bank, thus increasing market interest. Raising interest rates is usually to raise deposit interest and loan interest.

With the increase of deposit interest, people will be more willing to deposit their money in the bank to obtain income, while the increase of loan interest will increase the investment cost, thus reducing the investment enthusiasm of the market.

Raising interest rates is a common macro-control measure of the country. Raising deposit interest and loan interest will increase people's savings, reduce consumption and reduce the investment of industrial and commercial enterprises. At this time, the stock market will be depressed and the circulation speed of money will be reduced. In this case, inflation will be eased, the national currency will appreciate, but the country's economic growth rate will slow down accordingly.

What impact will the central bank's interest rate hike have on loans?

Raising interest rates by the central bank means an increase in the cost of capital, which will mainly have the following effects on loans:

1. The increase of loan interest leads to the increase of loan cost.

The central bank's interest rate hike is generally carried out in two directions, that is, loan interest and deposit interest are raised at the same time. The increase of loan interest will directly lead to the increase of loan cost; The increase of deposit interest will lead to the increase of bank capital cost and indirectly lead to the increase of loan cost.

2. Make loans more difficult and make loans more and more tense.

Social funds are diversified, including idle funds, banking system funds and special investment funds. If the central bank raises interest on deposits, there will be more and more deposits, social funds will flow into banks, resulting in a decrease in the supply of social funds, and more people will raise funds through lending institutions, making loans more and more tense.

Moreover, when the central bank raises interest rates, it often reduces the amount of funds through the open market at the same time, further reducing the supply of funds to banks, making the funds of banks more tense and increasing the difficulty of loans.

I often hear what banks say about raising interest rates and cutting interest rates. What's the impact on us?

The so-called interest rate cut or interest rate increase means that the central bank uses interest rate adjustment to change cash flow. When the central bank cuts interest rates, the income of funds deposited in banks will decrease, so the interest rate cut will lead to the outflow of funds from banks, and deposits will become investment or consumption, which will lead to an increase in capital liquidity. Generally speaking, cutting interest rates will bring more funds to the stock market, so it will help the stock price rise. When the central bank raises interest rates, the situation is just the opposite. Interest rate adjustment is an important means to implement monetary policy. \x0d\ Impact of interest rate hike and interest rate cut on us: \x0d\ 1. Lowering the deposit interest rate can reduce bank deposits, make the money in hand circulate in the market, increase the liquidity of money in the market, and help stimulate consumption. \x0d\2。 Reducing the loan interest rate can reduce the lender's debt repayment burden, enable the lender to repay the bank loan and reduce the risk of non-performing loans. At the same time, it can also stimulate the increase of bank loans and increase the liquidity of money.