After a lapse of seven years, the central bank lowered the interest rate of the first set of personal housing provident fund loans 15 basis points.
On September 30th, according to the website of the People's Bank of China, the People's Bank of China decided to reduce the interest rate of the first individual housing provident fund loan by 0. 15 percentage point from June, 2022, and adjust the interest rates for less than five years (including five years) and more than five years to 2.6% and 3. 1% respectively. The second set of personal housing provident fund loan interest rate policy remains unchanged, that is, the interest rates for less than five years (including five years) and more than five years are not less than 3.025% and 3.575% respectively.
Yan Yuejin, research director of the think tank center of Yiju Research Institute, pointed out that the reduction of the interest rate of provident fund loans is mainly aimed at the just-needed housing demand, that is, the first set of personal provident fund loans is subject to a loose policy orientation, which also reflects the orientation of further reducing the purchase cost of just-needed buyers.
Li, chief researcher of Guangdong Housing Policy Research Center, believes that in May and August this year, the central bank lowered the loan market quotation (LPR) twice, and commercial banks also lowered the personal mortgage interest rate. According to the monitoring data of RealData, as of September 19, the mainstream interest rate of mortgage in 86 cities has been as low as 4. 10% for the first set and 4.90% for the second set. From the perspective of supporting individuals' just-needed and housing-changing needs, the interest rate of provident fund loans will definitely be lowered.
Yan Yuejin said that commercial bank loans continue to cut interest rates, and objectively, the interest rate of provident fund loans needs to be further lowered. Otherwise, the spread between provident fund loans and commercial loans is relatively small, which will objectively reduce the attractiveness of provident fund loans. The further reduction of the interest rate of provident fund loans makes the advantages of subsequent provident fund loans more obvious, which has a positive effect on further reducing the interest rate of loans for just-needed buyers.
For example, if the provident fund loan is 6,543,800 yuan, the loan term is 30 years, the principal and interest are equal, and the interest rate is 3.25%, it will be 4,352.06 yuan per month, with a total interest of about 566,700 yuan; If the interest rate of provident fund (interest rate over 5 years) is adjusted to 3. 1%, the monthly repayment will be 4,27016 yuan, and the total interest will be about 537,000 yuan; After the change of interest rate, the monthly payment decreased by about 8 1.9 yuan, and the total interest decreased by about 29,700 yuan.
Chen Wenjing, director of market research in the Index Department of the Central Reference Institute, pointed out that after seven years, the central bank lowered the interest rate of provident fund loans again. The last reduction was in August of 20 15. After this downward adjustment, the interest rates of provident fund loans for less than five years (including five years) and more than five years are lowered to 2.6% and 3. 1% respectively. The central bank issued a policy of lowering the interest rate of the first home loan for two consecutive days, and commercial loans and provident fund loans were promoted in all directions, which is expected to effectively drive the release of rigid housing demand.
Ma Hong, a senior researcher at Trust Investment Research Institute, said that since September 30 last year, the national first home loan interest rate and second home loan interest rate have been lowered. However, by the end of the third quarter of this year, the real estate market was still relatively depressed, with a double-digit decline in national commercial housing sales and a rare negative growth in real estate investment. Therefore, it is necessary to further implement the easing policy. With the further reduction of mortgage interest rate, it is believed that the real estate market is expected to stabilize gradually in the fourth quarter.
What does it mean for the central bank to cut interest rates?
The central bank's interest rate cut means:
1, savings decrease
The main purpose of investors to deposit money in banks is to obtain expected interest income and resist currency depreciation caused by inflation. The reduction of deposit interest rate means that the expected income of deposits with the same term will drop, and depositors will naturally choose to take out their funds and invest them in other markets, resulting in a decrease in bank deposits, an increase in the amount of money circulating in the market, and a corresponding increase in residents' consumption and investment expenditure.
The national debt interest rate is also closely related to the deposit interest rate. After the general deposit interest rate is lowered, the new round of national debt interest rate may also be lowered, and the expected return on national debt investment will also decline.
On the contrary, if the deposit interest rate is raised, it will usually attract more residents to use their spare money for savings, thus reducing the currency circulating in the market and increasing bank savings.
2. Reduce the cost of social financing.
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. The reduction of loan interest rate means that the financing cost of enterprises is reduced, and enterprises can expand their investment through loans and promote economic recovery.
Influence of central bank's interest rate cut on floating interest rate
The central bank's interest rate cut has led to a decline in deposit and loan interest, and people may choose other investment and financial management methods to deal with the central bank's interest rate cut; Finally, cutting interest rates will lead to consumption, which may lead to a small-scale rise in prices.
1. The interest rate cut will reduce our loan interest. The central bank's interest rate cut will reduce our deposit and loan interest, which is undoubtedly good for people with long-term mortgages, because many people choose the floating interest rate of LPR, which rises according to the floating policy and falls according to the downward policy, so in this respect, the reduction of interest means that our hard expenses will be reduced, which will help to increase our income.
Second, I will choose other investment and financial management methods. The interest rate cut by the central bank not only reduces the loan interest, but also reduces the deposit interest. The interest rate of the same sum of money with the same term is reduced, which is not good for depositors. Under the influence of this background, some investors may choose the basic market or stock market with relatively high yield to buy wealth management products launched by banks or financial institutions. Therefore, interest rate cuts will change people's wealth management methods and favor higher-yield wealth management.
Third, it may lead to an increase in consumption cost. Interest rate cuts also mean that the money in the bank is worthless, so some people will choose to take out the money in the bank and realize it. That is what we often call consumption. In order to consume and stimulate economic growth, the government will take measures to cut interest rates. But the disadvantage of this is that more consumption may lead to a shortage of goods, which in turn will lead to a series of changes such as rising prices and inflation.