The interest rate cut on deposits means that the deposit interest of existing banks will be reduced and the loan interest will be reduced accordingly, which will increase the liquidity of social funds and help them flow to the market; People began to have more money, which also promoted the growth of the stock market and the recovery of the consumer industry, service industry and real estate market. The interest rate cut is to reduce the deposit interest, that is, the money in the bank. I earned 200 yuan the year before, but now I only earn 100 yuan.

What are the benefits of the central bank's interest rate cut?

1, the central bank's interest rate cut further reduced the financing cost of the real economy and the loan interest rate was lower;

2. The central bank will expand domestic demand by cutting interest rates, consolidate the foundation of economic recovery, and keep the economy running in a reasonable range;

3. The central bank's interest rate cut is conducive to the repair of the stock market valuation, the capital flowing into the stock market increases, and the overall trend of the stock market is favorable;

4. It is expected that the LPR quotation will continue to decline, which will further stimulate the credit demand of residents and enterprises and help banks to carry out loan business;

5. The central bank's interest rate cut led to a reduction in mortgage interest rates. After the interest rate cut, the quotation of lpr will drop and the number of buyers will increase, which will promote the recovery of the housing market.