Economic Effects Of China's Interest Rate Policy In Recent Years

The article mainly on the economic effects of interest rate policy in recent years of our study. My first reviewed the planned economy era and the beginning of reform and opening up policy changes in interest rates;then highlighted nine since 1996, our interest rates change, and our monetary policy transmission mechanism of evolution and the status.Interest rates are based on a certain set of economic conditions, changes in interest rates impact factors, the article focused on the analysis of inflation, business costs and the impact of exchange rates on interest rates, combined with our economic reality, the analysis is expected to be between actual inflation and nominal interest rates of inflation bonds, At the same time the rate of inflation and nominal interest rates are related to a relationship;from the actual situation of enterprises, high interest rates caused by high-cost, enterprise performance requirements of interest;in the exchange rate, interest rate arbitrage capital with the presence of foreign forces in the lower and lower interest rates. Governments need to avoid regulatory arbitrage and capital inflows to safeguard economic stability operations.Analysis of the impact of interest rate policy development factors, the article proceeded to analyse the interest rate policy arising from the enactment of the policy effects, many times through the effect of policy analysis to be : In terms of consumption, our income disparities are weakened by the consumption rate effects, and the consumption structure of interest rates also change the consumption effect is embodied;In real estate, interest rates dropped significantly help to reduce investment risk and reduce the cost of real estate investments, but also conducive to reducing the interest burden purchase borrowers;in the stock market, the stock market response to the various different times, while China's stock market immature and non-standardized rate effects also can not be fully displayed. The impact of interest rate movements on the exchange rate, interest rate changes will be mainly through different ways and different ways to change the balance of payments, eventually lead to changes in exchange rates. My level of interest rates in 2004 through increased research in all aspects of its domestic economic policies embodied in effect : raising the cost of capital of enterprises, but is conducive to SME development;all commercial banks will promote accelerated development intermediary businesses, the expansion of profit sources, enhance our ability to withstand interest rate risks;plus interest on the impact of both the insurance industry, specific product lines and also as insurance companies portfolio characteristics to determine, compared with capital preservation funds and bond funds will become more difficult in the competition, higher interest rates mean that the opportunity cost of the purchase of capitalpreservation fund will be increased.We should make flexible use of interest rate policy in economic construction, the primary interest is to strengthen the regulatory flexibility to changing public expectations;interest rate marketization of China's financial system and economy is the key to deepening reform;develop consumer credit, savings investment into the establishment of an effective mechanism to strengthen the interest rate to be effective demand stimulus;It should also be further enhanced by the Central Bank monetary control;My last article on the trend of changes in interest rates made the interest rate level will be expected to maintain the existing state.