TEL: 0574-8719678
Contact us
TEL: 0574-8719678
E-MAIL: service@gdds168.com

Central Bank announced interest rate cuts of 0.25%!

people's Bank of China, beginning on March 1, 2015 will lower financial institutions ' lending and deposit interest rates. Financial institutions cut its benchmark one-year lending rate from 0.25% to 5.35%; cut its benchmark one-year deposit rate from 0.25% to 2.5%, combined with the interest rate market-oriented reform, financial institutions deposit interest rate floating range by 1.2 times of the benchmark deposit interest rate adjustments capped at 1.3 times; other deposit and lending interest rates and personal housing accumulation Fund loan and deposit rates adjusted accordingly.

Central Bank officials cut the Renminbi lending and deposit benchmark interest rates and expand deposit interest rate floating range and answered questions

1 q: interest rate adjustment how effective November 22, 2014? The cut the benchmark lending and deposit rates what is the main consideration?

answer: November 22, 2014, people's Bank of China cut the benchmark lending and deposit rates and to further promote market-oriented interest rate reform, guiding role to play as benchmark interest rates and the gradual implementation of the policy measures, financial institutions loans interest rates declined, alleviating to some extent for social high financing costs. Affected by economic restructuring and the impact of falling international commodity prices in the past few months, consumer price inflation has come down, decline in industrial prices expanded on the formation of real interest rates push up effect. Current historically low prices, provide space for proper use of interest rate tool. Focus of this interest rate adjustment is to continue to play the role of benchmark interest rates lead to further consolidate the achievements of social financing costs down, creating a neutral for the adjustment of economic structure and the transformation and upgrading of appropriate monetary and financial environment.

2 q: the main content of the cut the benchmark lending and deposit rates, and what are the expected results?

answer: during the symmetrically cut benchmark lending rates. Among them, the one-year deposit interest rate from 2.75% to 2.5%, its benchmark one-year lending interest rate from 5.6% to 5.35%; other deposit and lending interest rates and personal housing accumulation Fund loan and deposit rates adjusted accordingly. Due to the Central Bank's benchmark interest rate still has a strong significance again cut benchmark lending rates is expected to direct loans to financial institutions must pull real interest rates. Same time deposit interest rates fall further, but also to reduce the cost of financing for financial institutions to drive various kinds of market interest rates and funding costs continue down to further ease the high cost of financing problems will have a positive effect.

3, q: the combination of interest to further expand the deposit interest rate floating range of background and what is the meaning?

answer: in recent years, with the advancing of market-oriented interest rate reform, gradually expand the deposit interest rate floating range, pricing capabilities of financial institutions continued to improve, has taken shape in difference, refinement of the deposit interest rate pricing structure. Especially in the deposit insurance system is about to launch, the related reform under the background of major breakthroughs, to further expand the deposit interest rate floating range conditions mature. Meanwhile, with banking deposits, such as the rapid development of alternative financial products, more and more liability classes have formed a market price, that China must speed up the deposit interest rate market-oriented reform.

to this end, continued to play the role of benchmark interest rates on Bank pricing guide at the same time, combined with the interest rate market-oriented reform, further the ceiling deposit interest rate floating range from 1.2 times times the benchmark interest rate widened to 1.3 times. This deposit interest rate market-oriented reform in China is another important initiative. Deposit interest rate floating range expanded to financial institutions of the autonomous pricing spaces enlarge and conducive to improve the pricing mechanism-building, enhancing the independent pricing power, accelerate the transformation of business model and improve the level of financial services, but also to market interest rate formation mechanism to better play the decisive role of market forces in allocating resources.

4, ask: does this interest rate adjustment means that the currency policy change in the next stage the Central Bank's monetary policy and interest rate marketization reform of what?

answer: this interest remained focused on keeping real interest rates economic growth fundamentals, commodity prices and unemployment trends, does not represent a prudent monetary policy change. China's economic development has entered a new normal, and development conditions and the development environment are changing, and its core is the mode of economic development and changes in the economic structure. Next, we will continues to according to Central, and State of strategy deployment, insisted stability in the seeking into work total tone and macro policy to stability, and micro policy to live of General thought, more active to adapted economic development new normal, put turned way adjustable structure put in more important of location, keep policy of continuity and stability, continues to implementation sound of currency policy, more focused on elastic moderate, integrated using variety currency policy tool, timely moderate pre adjustable fine-tuning, Creating a neutral for the adjustment of economic structure and the transformation and upgrading of appropriate monetary and financial environment, promoting economic development and sustainable development. Meanwhile, more focus on innovation, and reforms in the regulation of, and deepening the reform of monetary policy closely, timely through the introduction of companies and individuals for CDs and other means, continue to expand financial institutions autonomous pricing spaces, orderly market-oriented interest rate reform and further improve the interest rate adjustment system, improve the interest rate transmission mechanism, and constantly enhancing the effectiveness of Central Bank interest-rate adjustment and macro-control.

BACK

Copyright gdds168.com, All rights reserved  E-mail: service@gdds168.com