The Choice Of Money Market Benchmark Interest Rate Research Under Interest Rate Marketability Reform

2006, it is the last year that our country expects the protection for our domestic bank after joining WTO, as well as the key year for China's interest rate marketization reform. With the gradual opening up of financial markets and interest rate marketization come full our banking market environment will be further improved, and it also implies that increased competition increase.In this context, the author attempts to adopt market-oriented reform of China's interest rate review, to analyze how to choose the benchmark interest rate of money market. By learning the relevant experience from the Western Country, the author try to find a interest rate of money market which is suitable for implementing the money police of our Central Bank. Finally, the authors draw a conclusion about the suitable benchmark interest rate of money market, which is the inter-bank bond repo interest rate. In accordance with this line of thinking, this article is divided into three parts dealing with. In the first part of the article, the author discusses the meaning of interest rate marketization and benchmark interest rate of money market. Also, the author states the different kinds of interest rate marketization theory, and the author also makes a comment on the different kinds of theory. At last, the author lists some principles about how to choose the benchmark interest rate of money market.In second chapter, the author recalled the action of our different interest rates of money market on the money policy, and make a qualitative and quantitative analysis of current interest rate of money market, point out that the advantage of the interest rate of the inter-bank bond repo as far as it goes. In the third chapter, the author uses the conclusion of the qualitative and quantitative analysis of current interest rate of money market as a basis to put forward a conclusion: as far as it goes, the inter-bank bond repo interest rate is the better choose for the monetary administering authority as a benchmark interest rate of our money market. So at last, the author put forward some procedures to perfect the benchmark rate-forming mechanism of the money market.