What is the specific reason behind the bank's interest rate cut? What impact will the bank cut interest rates have? Many depositors will withdraw their deposits from the bank after the bank cuts interest rates. Because the interest rate of deposits is low, they can't get the ideal income, and some depositors will definitely invest their money in the market or consumer market. The impact of this is to stimulate economic growth, stimulate consumption and increase labor positions.
Therefore, whenever China's economic development fails to meet expectations, the People's Bank of China will cut the benchmark interest rate in real time. In the past two years, all walks of life have been hit hard by the epidemic. The speed of economic development can't reach the expected data. In order to stimulate economic recovery, the People's Bank of China will definitely cut interest rates. Therefore, if you understand this, you will know that in the next few decades, as long as there are no major changes, interest rate cuts must be the mainstream.
Since interest rate reduction is the trend, will there be "zero interest rate" and "negative interest rate" in the future? In fact, compared with developed countries in Europe and America, our deposit interest rate is still relatively high. The only drawback is that our loan interest rate is also very high. Since interest rate reduction is the mainstream trend, will there be "zero interest rate" and "negative interest rate" in the future? It is necessary to explain to you what is "zero interest rate"? What is "negative interest rate"? At present, about 10 countries in the world implement zero interest rate. Three countries have negative interest rates. "Zero interest rate" does not mean putting money in the bank without any interest. "Negative interest rate", not to mention putting money in the bank, not only has no interest, but also has to pay a safekeeping fee.
"Zero interest rate" refers to the central bank of this country (equivalent to the People's Bank of China), and the benchmark interest rate is zero. However, the deposit interest rate of commercial banks is still above 1.0%. "Negative interest rate" also means that the benchmark interest rate of the national central bank is negative. Like Japan, the benchmark interest rate is negative 0.25%. However, its commercial bank deposit interest rate is still between 0.25% and 1.0%. Therefore, we need not be afraid of "zero interest rate" and "negative interest rate". Moreover, according to China's actual national conditions, it is estimated that there will be no "zero interest rate" in another 30 to 50 years.
The low deposit interest rate of commercial banks is not all a bad thing. As I said before, the bank's interest rate cut will release a lot of deposits, and the hot money in the market will increase, so that the economy can develop well. Moreover, we can notice that the interest rates of deposits and loans in developed countries in Europe and America are very low. On the other hand, in some developing countries, the low deposit interest rate is due to serious domestic inflation. The country can only delay the devaluation of the currency by raising the interest rate on deposits and prevent people from being dissatisfied with the devaluation of wealth. It is a trend to cut interest rates, and the deposit interest of banks will only be lower and lower in the future.