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 economic development level is low and the society is in a depression period, banks' willingness to invest will decrease, and the demand for loanable funds will naturally decrease, and the market interest rate will generally be low.
The influencing factors are:
Central bank policy: Generally speaking, when the central bank expands the money supply, the total supply in loanable funds will increase, the supply exceeds demand, and the natural interest rate will decrease accordingly; On the contrary, the central bank implements a tight monetary policy to reduce the money supply, so that the demand in loanable funds exceeds the supply, and the interest rate will rise accordingly.
Price level: Market interest rate is the sum of real interest rate and inflation rate. When the price level rises, the market interest rate also rises accordingly, otherwise the real interest rate may be negative. At the same time, due to rising prices, the public's willingness to deposit has declined, while the demand for loans from industrial and commercial enterprises has increased. The imbalance between deposit and loan caused by loan demand exceeding loan supply will inevitably lead to an increase in interest rates.
Stock and bond market: if the stock market is on the rise, the market interest rate will rise; On the contrary, interest rates are relatively low.
International economic situation: changes in one country's economic parameters, especially exchange rate and interest rate, will also affect the fluctuation of interest rates in other countries. Naturally, the rise and fall of the international securities market will also bring risks to the interest rates faced by international banking business.
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.