The impact of lowering bank interest rates:

1. Impact on banks:

As the central bank advances market-based interest rate reforms, the upper limit of deposit interest rates has been expanded to the benchmark 1.5 times the interest rate, banks and other financial institutions can more flexibly price deposit interest rates. Coupled with the continuous financial innovation and accelerated financial "disintermediation", the cost of bank liabilities is relatively rigid, especially since the central bank also relaxed the one-year policy this time. The interest rate floating limit for the above time deposits is capped. Therefore, the central bank's symmetrical interest rate cuts have a negative impact on bank profits, and are estimated to reduce the banking industry's net profit margin by 1% to 2%.

With the start of the interest rate cut cycle, the yields of bank financial products will face a long-term downward trend. When choosing financial products, investors should purchase medium- and long-term products to lock in the current high returns as early as possible. Alleviating upward pressure on interbank interest rates and helping to reduce the volatility of interbank interest rates.

2. Impact on the stock market:

Interest rate cuts will bring benefits to the A-share and bond markets, bringing more capital flows, and the stock market is expected to usher in a spring of investment.

Interest rate cuts directly benefit industries with high debt ratios, such as real estate, infrastructure, nonferrous metals, coal, securities and other industries. But it remains to be seen whether the banking industry can enjoy the benefits of interest rate cuts. An interest rate cut will further trigger expectations of RMB depreciation, which is negative for companies that need to import a lot of raw materials, such as the papermaking industry. However, the depreciation of the RMB is beneficial to exports, so it is good news for companies that export products, especially mid- to high-end products. In addition, on the one hand, interest rates are cut, and on the other hand, the government increases investment in infrastructure construction. Infrastructure-related sectors deserve continued attention in the future.

3. Impact on the property market:

Provident fund loans or commercial real estate loans and repayment interest rates are linked to the central bank’s benchmark interest rate. Therefore, this reduction in the benchmark interest rate will have an impact on the housing market. For some individuals and families who want to buy a house, the pressure on mortgage loans has become smaller.

4. Impact on the economy:

An interest rate cut means that interest may be reduced, causing bank deposits to flow to consumption and investment.

Banks have relaxed loan requirements, making it easier for people to get loans and the cost of loans has also been reduced. Obtaining financial support will make more capable people more willing to start businesses and make investments to obtain more economic income.

After the bank fixed deposit, the interest rate is reduced, the interest will not change

If the China Merchants Bank all-in-one card "deposits and withdraws in lump sum", the automatic transfer will be based on the corresponding "date of transfer" Interest is calculated based on the deposit term interest rate.