1. The annual interest rate refers to the deposit interest rate for one year. The so-called interest rate is the abbreviation of "interest rate", which refers to the ratio of interest amount to deposit principal or loan principal in a certain period of time. Usually divided into annual interest rate, monthly interest rate and daily interest rate. The annual interest rate is expressed as several percentage points of the principal, the monthly interest rate is expressed as one thousandth and the daily interest rate is expressed as one thousandth. When the economic development is in the growth stage, the investment opportunities of banks increase, the demand for loanable funds increases and interest rates rise; On the contrary, when the economy is in a downturn and the society is in a depression, banks' willingness to invest decreases, the demand for loanable funds naturally decreases, and the market interest rate is generally low. Market interest rate is the sum of real interest rate and inflation rate. When the price level rises, the market interest rate also rises, otherwise the real interest rate may be negative.
2. At the same time, due to rising prices, the public's willingness to deposit will decrease, while the loan demand of industrial and commercial enterprises will increase. The loan demand caused by the imbalance between deposits and loans is greater than the loan supply, which will inevitably lead to an increase in interest rates. Stock and bond markets If the securities market is on the rise, the market interest rate will rise; On the contrary, interest rates are relatively low. The change of one country's economic parameters, especially the change of exchange rate and interest rate, will also affect the fluctuation of interest rates in other countries. Of course, the rise and fall of the international securities market will also bring interest rate risk to the international banking industry. Annual interest rate change.
3. The annual interest rate is expressed as several percentage points of the principal. The People's Bank of China has strengthened the use of interest rate instruments. Interest rate adjustment is frequent year by year, the interest rate regulation mode is more flexible, and the regulation mechanism is becoming more and more perfect. With the gradual advancement of interest rate marketization reform, interest rate policy, as one of the main means of monetary policy, will gradually change from direct interest rate regulation to indirect interest rate regulation. As an important economic lever, interest rate will play a more important role in the national macro-control system.