The impact is as follows:

1. It affects the circulation of money. Generally, high interest rates will inhibit the circulation of money in the market.

2. Investment. Interest rate increases, investment decreases

3. Savings. As interest rates increase, savings increase.

4. foreign exchange. An increase in interest rates will attract foreign loans, while capital inflows will increase and outflows will decrease, resulting in an increase in the exchange rate and a decrease in exports, that is, a decrease in net exports.

5. There is also a negative correlation between interest rate and unemployment rate.

lower social financing costs

lower interest rates on bank deposits often lead to lower interest rates on loans and refinancing and an increase in the scale of bank loans. Many small and medium-sized enterprises rely on bank loans to maintain their operations. Lowering the loan interest rate means reducing the financing cost of enterprises, thus stimulating enterprises to expand their investment through loans and promoting economic recovery.

among all kinds of bank deposit products, the interest rate of certificates of deposit is relatively high, which is mostly 4-5% higher than the benchmark interest rate. Therefore, investors can choose certificates of deposit with abundant funds or bank wealth management products with lower risk level. The above content about what it means to lower the interest rate of bank deposits, I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.