The annual interest rate refers to the one-year deposit rate. The so-called interest rate is the abbreviation of "interest rate", which refers to the ratio of interest amount to deposit principal or loan principal within a certain period of time. Usually divided into annual interest rate, monthly interest rate and daily interest rate. The annual interest rate is expressed as a percentage of the principal, the monthly interest rate as a percentage, and the daily interest rate as a percentage.
When the economic development is in the growth stage, the investment opportunities of banks increase, the demand for loanable funds increases and interest rates rise; On the other hand, when the level of economic development is low and the society is in depression, banks' willingness to invest decreases, so the demand for loanable funds naturally decreases and the market interest rate is generally low.
The People's Bank of China has strengthened the use of interest rate instruments. Interest rate adjustment is frequent year by year, the interest rate regulation mode is more flexible, and the regulation mechanism is becoming more and more perfect. With the gradual advancement of interest rate marketization reform, interest rate policy, as one of the main means of monetary policy, will gradually change from direct regulation to indirect regulation. As an important economic lever, interest rate will play a more important role in the national macro-control system.