The Research About The Influencing Factors Of Interest Rates In Our Money Market

The benchmark of interest rate in money market. which is based on supply and demand plays a dominant role on the basis of interest rates throughout the interest rate system. It is the benchmark for other interest rate decisions and plays a key role in the healthy and stable development of a country’s financial system. Generally, the benchmark interest rate has excellent properties.of foundation and stability.Throughout the marketing process of interest rates in our country, we find SHIBOR and CHIBOR have the potentiality to become the benchmark interest rate, but they also have some shortcomings. The volatility of these rates is the most impressive in the June of 2013. Both SHIBOR and CHIBOR at least are still insufficient in terms of stability, but stability is a necessary attribute of money market benchmark interest rate. Therefore, it is necessary to analyze the factors that affect the market interest rate, so as to control the influence factors better.From the empirical situation, the impact of SHCI and exchange rate on the 7-day interbank rate (IB7) is very large in the long term and then the impact of the repo rate, M2 on IB7 is little. In the short term, the impact of SHCI and exchange rate is little and the impact of the repo rate is very large. The impact of M2 on IB7 is not very significant in the short term.Whether in the long or the short term, the impact of M2 on IB7 is not large. About the monetary policy liquidity mystery, there are some explanations such as parameters choice improperly, expected factors, poor choice of empirical model. This article considers money supply adding shadow banking credit mechanism."Shadow banking" was first proposed by Macaulay. Shadow banking which drifts away from the regulatory body exercises the functions of the bank. With the continuous development of financial innovation, the liquidity the shadow banking creats is increasingly becoming part of the broad money supply, and this part of the liquidity is difficult to be controlled by the government, which has brought great challenge for the implementation of central bank’s monetary policy.The total social financing index was first published in the first quarter of 2011. The index includes RMB loans, foreign currency loans, trust loans, entrusted loans, corporate bonds, stocks and so on. Because the total social financing index includes liquidity created by the shadow banking credit, the relationship of total social financing and IB7 are empirically tested in this paper. It is found that there is no significant correlation between the total social financing and IB7 in the short term, but in the long term negative relationship between them is relatively obvious.This paper believes that the money supply including shadow banks will be well presented negative correlation with interest rates. Because the total social financing is more conducive to to reflect the social situation of investment and financing than bank credit,it is necessary.for the central bank to control the total social financing rather than the bank credit scale.Finally, the paper argues that SHCI, the exchange rate, the rediscount rate and the money supply including shadow bank credit will affect the volatility of money market interest rates, so the central bank should always pay attention to changes in these variables in order to keep the money market interest rates are relatively stable creating a good atmosphere for the money market interest rate system.