Increase the currency circulation, reduce the financing cost, ensure economic growth and employment, reduce the financial leverage of enterprises, stimulate investment and consumption, improve liquidity and release liquidity, thereby increasing the currency in the market, reducing the pressure on housing suppliers and lenders and stimulating domestic demand.
When the central bank raises interest rates, the situation is just the opposite. Interest rate adjustment is an important means to implement monetary policy. Lowering the interest rate will promote the expansion and reproduction of corporate loans, encourage consumers to borrow money to buy bulky goods, and encourage financial speculators to borrow money to speculate and promote the prosperity of the stock market, which will lead to the depreciation of the domestic currency, promote exports, reduce imports, promote inflation and gradually overheat the economy.
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Precautions for interest rate reduction loans:
1. When the bank accepts the mortgage application, it will check the borrower's credit report. If it finds that there is overdue repayment in the near future, the loan application is likely to be rejected. In order to avoid this situation, it is suggested to check the personal credit report before applying for a loan, and take timely measures to remedy any abnormality.
2. There are two main repayment methods of mortgage: average capital and equal principal and interest. Matching principal repayment is to distribute the loan principal evenly to each month, and at the same time, the buyer needs to pay off the interest between the last repayment date and the current repayment date.
Although the loan has entered a loose period, it does not mean that it is easy to apply for a mortgage. In order to ensure the smooth loan and save the loan application time, it is best to prepare the necessary procedures for the loan before lending.
Baidu encyclopedia-interest rate cut
Baidu encyclopedia-central bank cuts interest rates