On the evening of 5th, the central bank announced that it would raise the benchmark interest rate of RMB deposits and loans of financial institutions from April 6th, 201/year. The benchmark interest rates for one-year deposits and loans of financial institutions were raised by 0.25 percentage points respectively, and the benchmark interest rates for deposits and loans of other grades and individual housing enterprises were raised.

The interest rate of provident fund loans is adjusted accordingly.

The timing of this interest rate hike is exactly the same as that on February 9: on the eve of the release of macro data, the consumer price index (CPI) is also under great pressure.

For the upcoming CPI, brokers generally expect that CPI will exceed 5% again in March, and may exceed 5. 1 1% in last year, hitting a new high, indicating that China's inflation situation is still grim.

The central bank's choice of this time to raise interest rates shows its determination to stabilize prices and control inflation, which can guide the market correctly. 4c2 Bank Interest Rate Network believes that inflation is still the primary problem in economic life, and the central bank has raised it again.

Interest rates are conducive to curbing inflation and real estate bubbles.

After this adjustment, the benchmark interest rate for one-year deposits was raised to 3.25%, and the benchmark interest rate for one-year loans was raised to 6.3 1%. It is worth noting that the deposit interest rate was raised by 0. 1 percentage point, rising to 0.5%, higher than previous times.

Substantial adjustment will help to raise the short-term capital cost and combat capital speculation.

At the same time, the interest rate of loans for more than three years is only raised by 0.2 percentage points, which is slightly lower than the increase of the benchmark interest rate of one-year loans. It also shows that the central bank supports medium and long-term infrastructure construction and mortgage loans.

4c2 Bank Interest Rate Network believes that in the next few months, China's CPI growth rate may continue to exceed 5%, and the duration of negative interest rates will be extended. Moreover, the negative interest rate will be at the maximum level in the second and third quarters, so the expectation of raising interest rates in the future will always exist.

Previously, in order to maintain economic growth and control "hot money", the central bank used quantitative tools for currency regulation. 4c2 interest rate network predicts that the number of reserve operations in the next stage may still be relatively frequent, depending on the inflow of international capital.

Less open market funds are expected to be 2-4 times this year. The interest rate operation window is more cautious, and the second quarter, August and 10 are sensitive periods.

There are voices in the market that worry that high domestic interest rates will attract hot money in an environment with low external interest rates. However, analysts believe that the current one-year deposit benchmark interest rate is 3.25%, which is significantly lower than the inflation level. In this case, hot money even

Entering China, because of the "profit-seeking" nature of funds, is also betting on the upward trend of asset prices, rather than aiming at the spread with little profit margin. Therefore, the source of treating hot money still lies in treating inflation.