Hello, interest rate reduction means that the central bank lowers interest rates and uses interest rate adjustment to change cash flow. The characteristic of interest rate reduction is not to increase the amount of market funds, but to lower interest rates and change the direction of funds, thus promoting the flow of funds into markets other than banks and improving economic activity. Interest rate adjustment (interest rate increase and interest rate decrease) is an important means of monetary policy implementation, which embodies the national macro-control function, is conducive to rationally regulating the national economy, guiding the flow of monetary funds and promoting stable economic growth.

The interest rate reduction mainly includes two aspects: lowering the deposit interest rate and lowering the loan interest rate. If the deposit interest rate is reduced, depositors will tend to withdraw their deposits from banks for investment or consumption, thus increasing the money flow in the market and stimulating the economy to turn hot. Lowering the loan interest rate can reduce the lender's debt repayment burden, reduce the lender's capital cost, and promote the expansion and reproduction of corporate loans.