Interest rate is the abbreviation of interest rate, which refers to the ratio of interest to the amount deposited or lent in a certain period of time, which is determined by the relationship between supply and demand of funds. There are three kinds of interest rates in China: one is the deposit and loan interest rate of the People's Bank of China to commercial banks and other financial institutions, that is, the benchmark interest rate, also known as the legal interest rate; Second, the deposit and loan interest rate of commercial banks to enterprises and individuals is called commercial bank interest rate; Third, the interest rate in the financial market is called the market interest rate. Among them, the benchmark interest rate is the core, which plays a key role in the whole financial market and interest rate system, and its change determines the change of other interest rates.
Benchmark interest rate is one of the important means for China's central bank to achieve monetary policy objectives, and the basis for setting benchmark interest rate can only be monetary policy objectives. When the focus of policy objectives changes, the interest rate as a policy tool should also change. Different interest rate levels reflect different policy requirements. When the focus of the policy is to stabilize the currency, the central bank loan interest rate should be raised in time to curb overheated demand. On the contrary, it should be lowered in due course.
Last night, the People's Bank of China announced that it would lower the benchmark interest rate for deposits and loans. Since September 15, when the central bank announced that it would cut the benchmark interest rate for loans for the first time in four years, the central bank has announced three interest rate cuts in just one and a half months. This action is unprecedented.
This time, the benchmark interest rate of RMB deposits and loans of financial institutions will be lowered from 65438+1October 30th. Among them, the one-year deposit benchmark interest rate was lowered from the current 3.87% to 3.60%, down by 0.27 percentage points. The benchmark interest rate for one-year loans was lowered from the current 6.93% to 6.66%, down by 0.27 percentage points; The benchmark interest rates for other grades of deposits and loans will be adjusted accordingly. The interest rate of individual housing provident fund loans remains unchanged.