The so-called interest rate cut means that banks use interest rate adjustment to change cash flow. The interest rate cut reduces the income of bank deposits, leading to the outflow of funds from banks for investment or consumption. The increase of capital liquidity promotes the expansion and reproduction of corporate loans, encourages consumers to borrow money to buy bulky goods, and encourages financial speculators to borrow money to promote the prosperity of the crude oil market to a certain extent, which leads to the devaluation of the country's currency, promotes exports and reduces imports, and may eventually promote inflation and gradually overheat the economy.