If the deposit interest rate is lower than the inflation rate, it means that the deposit in the bank is a loss, and the deposit interest can't keep up with inflation, on the contrary, the deposit is profitable.

If the inflation rate is too high, the deposit interest will increase, so will the loan interest rate, so the loan interest rate is also closely related to the inflation rate.

Second, commodities are worthless. Is it deflation or inflation? Is the loan interest rate raised to control inflation or deflation?

Inflation refers to the phenomenon that the money supply is greater than the actual demand for money, that is, the actual purchasing power is greater than the output supply, which leads to the devaluation of the currency and the sustained and general rise of prices for a period of time.

Its essence is that the total social demand is greater than the total social supply (supply is far less than demand).

Excessive issuance of paper money, coins with low gold content and credit currency will lead to inflation.

If you don't understand the official statement above, let me make an analogy. If you buy 1 candy with 1 yuan now, you can only buy 1 candy with three yuan in three months. This time is inflation, and the loan interest rate is raised because of better and more recovery of funds, so this time is inflation.

Third, the relationship between inflation and loans.

Let's just say that repaying loans in advance is definitely not an option, not to mention that banks will charge some "punishment" fees for repaying loans in advance. If the loan is repaid in advance, there will be no cash in hand, and there will be less flexible space in the future.

The same is true

At present, the most urgent problem in China is the management of inflation. Please remember, as long as China is now the eternal theme, inflation and asset bubbles.

Since controlling inflation is to control credit first, if you make a one-year investment, you don't have to worry that the bank loan interest rate will be lowered, but that his loan interest rate will be raised.

Another key issue is what to invest. Now inflation has shifted from commodity market to financial market, which shows that asset bubble has become a serious problem. If you invest now, suppress, commodity market and financial market prices fall at the same time, then it is very likely that your investment will be affected by the wind.

The above are some references, I hope I can help you.

Once this happens, inflation can be curbed. Because rising interest rates will increase the cost of capital.

Fourth, the relationship between inflation and loans.

Let's put it this way: if you pay off 1.3 million now, and the remaining loan is 2 million, you still owe the bank 700,000. If you buy 130 as the asset A that can be preserved now, maybe after 1 year, you can sell A for 2 million yuan, and then you can repay the remaining bank loan, so that you don't owe it. The key is whether you can buy asset A with certain value preservation and appreciation. If asset A shrinks after 1 year, you owe the bank more. No one can 100% determine what must be preserved and increased. The interest rate of bank loans may rise, and it is unlikely to be lowered. Rising interest rates will curb inflation, and vice versa. However, if the interest rate rises sharply, it will inhibit economic growth, on the contrary, it will promote growth. Policymakers can only weigh one guarantee and one release.