Generally speaking, the characteristics of policy benchmark interest rates include the following:

1. Market-oriented: determined by market supply and demand, and also reflects market expectations for future supply and demand conditions.

2. Basic: It is in a basic position and has a strong correlation with interest rates in other financial markets or prices of financial assets.

3. Transmissibility: The reflected market signals or regulatory signals can be effectively transmitted to the prices of other financial markets and financial products.

The benchmark interest rate is a universal reference rate in the financial market. Other interest rate levels or financial asset prices can be determined based on this benchmark interest rate level. The benchmark interest rate is one of the important prerequisites for interest rate marketization.

Under the conditions of interest rate liberalization, financiers measure financing costs, investors calculate investment returns, and management regulates the macro economy. Objectively, they all require a generally recognized benchmark interest rate level as a reference. Therefore, in a sense, the benchmark interest rate is the core of the interest rate marketization mechanism.

Among them, the countries that use the interbank offered rate as their benchmark interest rate include the London Interbank Offered Rate (Libor) in the United Kingdom, the U.S. Federal Reserve Rate (FFR) in the United States, the Tokyo Interbank Offered Rate (Tibor) in Japan, The European Union’s Euro Interbank Offered Rate (Euribor), etc.; countries that use repo rates as benchmark interest rates include Germany (1W and 2W repo rates), France (1W repo rates), and Spain (10D repo rates). ?

What are the precautions for loan interest rates

1. When applying for a loan, the borrower must make a correct judgment on his or her repayment ability. Design a repayment plan based on your income level, and leave appropriate room for it so as not to affect your normal life.

2. Choose a suitable repayment method. There are two methods of equal repayment and equal principal repayment. Once the repayment method is agreed in the contract, it cannot be changed during the entire loan period.

3. Make monthly repayments on time to avoid penalty interest. Starting from the next month after the loan is initiated, the loan is generally released on the repayment date in the next month. Don't incur default penalties due to your own negligence, which will lead to failure to approve the bank's loan application again.

4. Keep your contract and IOU properly, and read the terms of the contract carefully to understand your rights and obligations.