Interest rates can be divided into the following categories based on how they are determined:

1. Market interest rate:

Market interest rate refers to the interest rate level determined by market supply and demand. . Under a free market economic system, market interest rates are affected by factors such as market demand and supply, inflation rate, and monetary policy. Market interest rates are usually the most volatile interest rates in the short term and can reflect the liquidity and risks of funds in the market.

2. Central bank benchmark interest rate:

The central bank benchmark interest rate is the interest rate level set by the country's central bank (such as the Federal Reserve, the European Central Bank, the People's Bank of China, etc.). This interest rate usually affects the entire country's monetary policy and economic system. The central bank affects the supply of funds in the market by adjusting benchmark interest rates, thereby achieving macroeconomic goals such as controlling inflation and promoting economic growth.

3. Government-guided interest rates:

Government-guided interest rates are interest rate levels set by government agencies based on macroeconomic objectives and financial market needs. The government provides loans to specific areas through policy banks or special financial institutions and formulates corresponding interest rate policies to promote the development of specific areas, such as supporting agriculture, small and micro enterprises, etc.

4. Contract interest rate:

Contract interest rate refers to the interest rate level clearly specified in the financial contract, which is usually agreed upon by the borrower and the lender at the time of transaction. The contract interest rate can be a fixed interest rate or a floating interest rate. The specific interest rate level and calculation method are determined by the parties to the contract through negotiation. This rate is commonly used in financial transactions such as personal loans and business financing.

5. Lending rate:

Lending rate refers to the interest rate agreed between financial institutions when conducting short-term fund lending. Call rates are usually used in the interbank market, which reflects the supply and demand for short-term funds between financial institutions. Central banks usually operate in the lending market to affect liquidity and interest rates in the market.

6. Loan benchmark interest rate:

Loan benchmark interest rate refers to the basic interest rate level when banks issue loans to customers. The benchmark loan interest rate is usually affected by the central bank's policy interest rate, and banks will determine their own loan interest rates based on the central bank's benchmark interest rate. In addition, different types of loan interest rates will be formulated taking into account the borrower's credit status, loan term and other factors.