First, cut interest rates.
Lowering interest rate means lowering interest rate, that is, banks use interest rate adjustment to change cash flow. The bank's interest rate cut will lead to the outflow of funds from the bank, the deposit will become investment or consumption, and the liquidity of funds will increase. RRR cut interest rates only to release the margin of commercial banks in the central bank, increase the supply of market funds, and help stimulate production links; Reducing interest rates does not increase the amount of market funds, but it can change the investment of funds.
The interest rate cut is to stimulate the domestic economy and enhance the liquidity of funds. For ordinary people, the interest on bank deposits may be less, but the repayment of loans has also declined. People who have mortgages or are ready to buy a house want to make a profit. This is a mixed blessing. In fact, interest rate cuts are not for ordinary people. They raised interest rates and raised the deposit reserve because the domestic economic situation was not good.
Second, the main role
It has two main functions: not only by reducing the withdrawal of deposits from the central bank, but also by forcing funds to enter markets outside banks, improving transaction activity, reducing loan costs and improving product competitiveness. The so-called interest rate cut means that banks use interest rate adjustment to change cash flow. When banks cut interest rates, the income of funds deposited in banks will decrease, so cutting interest rates will lead to the outflow of funds from banks and the change of deposits into investments.
RRR interest rate cuts and interest rate cuts are two different things. RRR cut interest on loans without falling. For example, the current deposit reserve is 20%, and a bank has 654.38 billion deposits and can lend 500 million. Now, if the RRR drops to 10% in a few years, banks can lend 10 billion. RRR cuts can release bank loan funds. Lowering interest rates means lowering the interest on deposits and loans, which can stimulate investment.
Third, the benefits
1, the bank cut interest rates, which lowered the threshold for buyers in disguise and reduced the pressure on monthly supply.
2. For real estate developers and small and medium-sized enterprises, it has promoted financing and loans, which can revitalize the financial pressure and development of some enterprises.
3. Promote the recovery of the country's overall economy and make the money deposited in the bank flow.