Interest rate reduction means that the central bank lowers the bank deposit interest rate and loan interest rate by 1 basis point, in which 1% is lowered, and1basis point is lowered by 0. 1%. For example, the interest rate before the interest rate cut was 2.95%, and after the interest rate cut was 10 basis point, its interest rate became.

Interest rate reduction is a loose monetary policy, which will adjust the bank interest rate and change the cash flow. When the bank cuts interest rates, the income from depositing funds in the bank decreases, so the interest rate cut will lead to the outflow of funds from the bank and the deposit will become investment or consumption.