What is interest rate cut
Interest rate cut refers to lowering deposit interest rate and loan interest rate, and adjusting discount rate accordingly. Banks use interest rate adjustment to change cash flow.
Content of interest rate reduction
The interest rate reduction is the purpose of the central bank to increase market liquidity. The increase of market liquidity by the European Central Bank and the Central Bank of China is equivalent to a disguised appreciation of the U.S. dollar. Gold and silver are denominated in U.S. dollars, and the appreciation of the U.S. dollar will be a reduction of gold and silver prices.
When banks cut interest rates, the income from depositing funds in the bank decreases, so the interest rate cut will lead to capital outflow from the bank, and the deposit will become input or consumption, resulting in increased liquidity of funds. Generally speaking, interest rate cuts will bring more capital to the stock market, which is conducive to the rise of share prices. The interest rate cut will promote the expansion of enterprise loans and re production, encourage consumers to buy large commodities with loans, and gradually heat up the economy.
On February 28, 2015, the Central Bank announced that since March 1, 2015, the benchmark one-year loan interest rate of financial institutions has been lowered by 0.25 percentage points to 5.35%, and the benchmark one-year deposit interest rate has been lowered by 0.25 percentage points to 2.5%. The upper limit of the floating range of deposit interest rate has been adjusted from 1.2 times of the benchmark deposit interest rate to 1.3 times.
On May 10, 2015, the People's Bank of China decided to lower the benchmark interest rate of RMB loans and deposits of financial institutions from May 11, 2015. The benchmark one-year loan interest rate of financial institutions was lowered by 0.25 percentage points to 5.1%; The benchmark one-year deposit interest rate was lowered by 0.25 percentage points to 2.25%, and the upper limit of the floating range of the deposit interest rate of financial institutions was adjusted from 1.3 times of the benchmark deposit interest rate to 1.5 times in combination with the promotion of interest rate marketization reform; The benchmark interest rate of other loans and deposits, and the deposit and loan interest rate of individual housing provident fund shall be adjusted accordingly.
Impact of interest rate cut
Through the central bank's interest rate cut, the cost of social funds is expected to be significantly reduced, which will play a positive role in reviving the real economy and promoting the adjustment and upgrading of the industrial structure. It can be said that reducing the cost of social financing is the direction of the central bank's efforts to cut interest rates this time. (Shareholders College: http://www.58188.com )
Go to the bank to deposit money, and the interest rate decreases
The central bank's interest rate cut has given commercial banks more independent space, and differentiated interest rate competition has formed among banks. You can "shop around" to save money and choose a bank with a higher interest rate to manage your wealth.
Impact of real estate market: the interest rates of commercial loans and provident fund loans have decreased, and the pressure on housing loans has decreased
Generally speaking, the interest rate of provident fund loans or commercial real estate loans and repayments is linked to the benchmark interest rate of the central bank. Therefore, the reduction of the benchmark interest rate has reduced the pressure on housing loans for some individuals and families who want to buy houses.
More active living consumption
The interest rate cut means that the interest may be reduced, so that bank deposits can be transferred to consumption and investment. In terms of consumption alone, the National Bureau of Statistics once conducted a survey on Chinese consumer confidence, which showed that the urban and rural consumer confidence indexes in October 2014 were 102.0 and 106.9 respectively. This interest rate cut will promote consumption. It is expected that the consumer confidence index will rise in the future, which is also conducive to the overall upward progress of the economy.
People will have more choices in financing
The central bank's interest rate cut has a direct impact on input products. The industries with high asset liability ratio or high capital liquidity pressure, such as real estate, cement, building materials and steel, are the most important ones; Secondly, it is also good for the stock market and bond market.
However, the interest rate cut will have a certain impact on the yield of Internet "baby" products such as Yu'ebao and bank financial products with monetary funds as the critical investment direction. It is expected that the yield of the two types of products will decline thereafter.
Stock market impact: six industries benefited significantly, the most favorable real estate stocks
According to the analysis, the interest rate cut will directly benefit industries with high debt ratio, such as real estate, infrastructure, nonferrous metals, coal, securities and other industries. However, it remains to be seen whether the banking industry can enjoy the benefits of interest rate reduction.
The real estate sector is the most favorable sector for interest rate cut. Because, for the current real estate industry, high currency prices and great capital pressure are two of the most important contradictions. After the last interest rate cut, the market ushered in a round of house buying, and the financial pressure of real estate enterprises has eased. Now, another interest rate cut will not only promote buyers to buy houses, but also reduce the cost of enterprises, so it is a major benefit for real estate stocks.
The interest rate cut will further trigger the expectation of RMB devaluation, so it is bad for enterprises that need to import more raw materials, such as the paper industry. However, the devaluation of the RMB is beneficial to exports, so it is good news for enterprises exporting products, especially high-end products. In addition, on the one hand, the interest rate will be cut, on the other hand, the government will increase investment in infrastructure, and the future infrastructure related sectors deserve continued attention.
Easier loan environment and easier venture investment
The interest rate was cut, and the banks relaxed their loan requirements, making it easier for people to get loans, and reducing the cost of loans. With financial support, more capable people will be more willing to start businesses and invest to obtain more economic income.
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