1. The benchmark interest rate should first be a market-oriented interest rate with extensive market participation, which can fully reflect the relationship between supply and demand in the market; Secondly, the conduction interest rate, which is dominant in the whole interest rate system, has strong correlation and great influence; Finally, it should be stable and easy to control.
2. The most famous benchmark interest rates in the world are LIBOR and the US federal benchmark interest rate. 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.
3. 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.
4. On the contrary, it should be lowered in due course. For example, in 1987, in view of the economic air with rising temperature, the State Council proposed "compressing economic air" and launched a campaign to increase production and save money, increase income and reduce expenditure. The central bank clearly put forward the monetary policy of "living a tight life" and raised the interest rate of central bank loans. Since the fourth quarter, the interest rates of annual loans and short-term loans have been raised from 3.4‰ and 5.4‰ to 6‰. 1988 in the fourth quarter, in the face of economic overheating and obvious inflation, the CPC Central Committee and the State Council put forward the policy of "managing the economic environment and rectifying the economic order", and a series of policy measures aimed at tightening monetary policy were successively introduced, including continuing to raise the central bank's loan interest rate, annual loan interest rate and short-term loan interest rate from 6‰ to 6.9‰ and 6.3‰ respectively to control the excessive demand for credit funds.
5. For another example, in the face of the high inflation of 1995, the central bank implemented a tight monetary policy and raised the central bank loan interest rate by 0.5 percentage points on 1 month 1 day. The benchmark interest rate is the guiding interest rate for commercial banks' deposits, loans and discounts announced by the People's Bank of China. The deposit interest rate cannot fluctuate temporarily, and the loan interest rate can fluctuate 65,438+00% to 70% on the basis of the benchmark interest rate.