Large, medium and small local commercial banks have the needs of development and competition, business planning and numerous assets. However, the market competition of commercial banks is fierce, and there are currently more than 4,000. In order to excel, preferential interest rate is a secret weapon to attract assets and pull deposits. As far as the specific situation of this year is concerned, affected by the epidemic, the stock market, gold market and bond market all fell in March, and inflation expectations were obviously insufficient. This is most obvious in foreign markets, and the Fed meeting began to take action to reduce the annual interest rate to 0%-0.25%.
Many central banks in other countries have followed suit to cut interest rates, and some countries even have liquidity traps. However, in China, some other measures have been taken to maintain inflation expectations, such as reducing the RRR of the central bank, issuing government bonds and increasing subsidies to enterprises, but there is no nominal central bank interest rate cut. At this special stage of this year, the central bank failed to cut interest rates. We should not expect the central bank to cut interest rates after the COVID-19 epidemic has stabilized. As far as China's current situation is concerned, there will be many challenges in entry and exit in the future. After deducting epidemic prevention materials, the data information can be more targeted. Overseas social order is still in the process of recovery, and the consumption market is decreasing, which is unfavorable to domestic export enterprises. This is also the fundamental reason why some enterprises want to switch to domestic sales.
Economy is the foundation of finance, but the financial industry must take economic development as the basis to cope with the difficult recovery of the world economy. Five years may not be enough to get out of trouble completely. Today, with the globalization of economic development, it is impossible for everyone to protect themselves. Obviously, judging from the current world economic development situation, the vast majority of European and American countries are still plagued by the COVID-19 epidemic. The data and information of powerful countries have not yet turned, companies have stopped production, workers have been laid off, and import and export trade has fallen sharply. These hazards may be really difficult to fill in five years, not to mention the problem of economic development activity or overheated investment and consumption. Therefore, the downward pressure on the global economy still needs to be released for a long time, and the annual interest rate will continue to decline.