An interest rate cut refers to a downward adjustment of interest rates. For example, today's interest rate is 5. After adjustment, tomorrow's interest rate will be 4. This process is called an interest rate reduction. On the other hand, if after adjustment, tomorrow's interest rate is 6, then this process is called an interest rate increase.

The People's Bank of China is my country's central bank. Its interest rate regulation is mainly reflected in three aspects:

1. According to changes in the macroeconomic and financial situation and monetary policy needs, through interest rate Leverage adjusts the deposit and loan interest rates of financial institutions.

2. Guide market interest rates through open market operations.

3. Adjust domestic small foreign currency deposit interest rates according to changes in international market interest rates, and maintain coordination of domestic and foreign currency interest rate policies.

The People's Bank of China will adjust the interest rate level and interest rate structure at appropriate times based on the needs of the implementation of monetary policy. Interest rate adjustments are frequent year by year, interest rate control methods are more flexible, and the adjustment mechanism is becoming increasingly perfect. As an important economic lever, interest rates play an important role in the national macro-control system.

On November 20, 2019, the People's Bank of China authorized the National Interbank Dismantling Center to lower the LPR. The reduction in LPR is conducive to promoting the decline of actual loans, indicating that changes in the People's Bank of China's policy interest rate have a more direct and effective impact on changes in LPR. In economic life, consumers should pay attention to changes in interest rates.