Research On China’s Monetary Policy Interest Rates Transmission Effect

From 1996 to complete our market-oriented reforms since the interbank market rate, the interest rate of the deepening of market-oriented, especially in 2013, the abolition of restrictions on lending rates, and to achieve a market-based interest rate formation mechanism loans, the market-oriented reform of interest rates and a big step forward. Thus the interest rate position continues to improve, along with the interest rate transmission mechanism of monetary policy are becoming increasingly important, but some practical situation, sometimes not ideal interest rate transmission. So, Analysis of China’s monetary policy rate conduction effect, explore impediments for improving the interest rate transmission effect has important significance.In order to explore below the conduction effects of monetary policy rate to provide a theoretical basis, the article begins with an overview of previous research on the transmission mechanism of monetary policy interest rate, as well as the classical theory of interest rate transmission mechanism. After combing the process of China’s market-oriented interest rate reform and summarizes the main features of the current interest rate system, that the current market-oriented reform of interest rates has not been fully completed, the official fixed interest rates and market interest rates together with the presence of. On this basis, in order to further explore and examine the effects of China’s current interest rate transmission, the empirical analysis article from the official rate and the market rate fixed angle, the following conclusions: China’s monetary policy interest conducting partial failure, from the role of direction, given official market interest rates and the role of each variable in direction is often the opposite, which to some extent offset by the interest rate transmission of monetary policy effectiveness; overall level of contribution from the look, the growing role of market interest rates, but given the current official rate of contribution degree is still stronger than the market rate, This shows that the proper role of market interest rates have not been effectively play, this is the main monetary authorities to achieve impact on the real economy through government regulation of fixed interest rates.Based on the above, the article from our current interest rates are not fully market-oriented, underdeveloped financial markets, and other aspects of central bank independence is not enough, the analysis led to the conduction of monetary policy rate partial failure causes. And the corresponding countermeasures, including further promote the interest rate market, improve the reserve system, the establishment of a deposit insurance system, the development of financial markets, improving the independence of the central bank, is expected to provide some reference for enhancing the effect of interest rate transmission.