The Research Of Interest Corridor's Influence On Interbank Short-term Market Benchmark Interest Rate Volatility

With the advancement of market-based reform of interest rates,the traditional quantitative way monetary policy is no longer able to play the ideal control effect,the transformation of monetary policy from quantitative to price changes is imperative.The emerging monetary policy regulatory framework of interest rate corridor is the "new favorite" of monetary policy in multiple countries and regions with its simple operation form and excellent control effect.Under the monetary policy framework of interest rate corridor,the adjustment of interest rate corridor ceiling rate and interest rate corridor of lower interest rates can rise to the purpose of regulating the market,so the industry is generally accepted that the interest rate corridor can smooth short-term market interest rate fluctuations,increase the transparency of monetary policy and recognition,improve the transmission efficiency of the market interest rate,the decrease of the central bank open market operations and reduce operating costs,etc.Some developed countries and regions in the world,such as Germany,Canada and so on as early as the end of last century has already begun to implement the system of interest rate corridor regulation of monetary policy to replace the original way of quantitative monetary policy regulation.In early 2013,our country has set up a regular convenient to borrow the new monetary policy tools,stock lending facilities as rate,interest rate corridor ceiling in China marks the new currency of interest rate corridor regulation policy began to play a role in our country.But from the start date of implementation of monetary policy interest rate corridor,in our country and only four years,compared with developed countries and regions,compared to the mature mechanism of interest rate corridor of our country interest rate corridor there are many imperfections.This paper explores the relationship between interest rate corridor and short-term market interest rate fluctuation from three levels.The first part explores whether short-term market interest rates in countries and regions where interest rate corridors are implemented are lower than those in countries and regions that have not implemented interest rate corridors.Among them,the United States,Europe and Britain were selected as samples of the interest rate corridor countries,China as a sample of the countries that did not implement interest rate corridor.According to the study,the short-term market interest rate fluctuation of the three countries and regions that implemented the interest rate corridor during the same period is lower than that in China's short-term market rate.Therefore,this paper argues that the implementation of interest rate corridor can reduce the fluctuation of short-term market interest rate.The second part of this article explores in China,for samples,and explores the short-term market interest rate corridor width and the relationship between the interest rate fluctuation,and it is concluded that the narrower the interest rate corridor width,the smaller the short-term market interest rate fluctuations.The third part analyzes the interest rate corridor system in China and reduces the fluctuation of short-term market interest rate in China.This part of the study selected the Chinese implementation of interest rate corridor before and after the implementation of interest rate corridor two paragraphs of the same length of evaluated,on the short-term market interest rates of the two period of observation period fluctuation are analyzed.The results show that the fluctuation of short-term market interest rate has been decreased after China implemented the framework of monetary policy adjustment of interest rate corridor.Based on the analysis of the appeal,and combined with the actual national conditions in China,the author for the implementation of the interest rate corridor in China put forward the following Suggestions:(1)the monetary authorities should immediately clear the target operating interest rate of the seven-day interbank pledged repo rate for the Chinese interest rate corridor.Due to China's current financial system is still the core banking system,and no change in the short term,and the bank pledged repo rates between both in terms of the degree of match with China's financial system,or from the point of view,China's monetary market daily actual turnover is the best choice for China's interest rate corridor target rate.(2)improve the policy transparency of interest rate corridor and timely publish the SLF rate,which is the upper interest rate of the interest rate corridor in China,to strengthen the notice effect of the interest rate corridor.(3)clear interest rate corridor and lower interest rate as soon as possible.China's interest rate corridor floor rate temporarily USES is excess reserves rate,due to the excess reserves of China has always been a relatively low level,it also has created the problem of China's interest rate corridor width is too wide,not conducive to the stability of the market.Therefore,the monetary authorities should make clear an interest rate corridor which is suitable for China's interest rate corridor and improve the system of interest rate corridor in China as soon as possible.(4)to further expand the access of our central Banks to the convenience of standing and borrowing.Although our country started in 2015 to some qualified small and medium-sized financial institutions to provide short-term liquidity support,but in practice,most lending object or a large commercial Banks.Only the further development of the normal lending facilities will make the effect of the interest rate corridor more obvious.(5)further narrow interest rate corridor width.The current interest rate corridor in China is still a relatively wide width compared with developed countries and regions.The future of China should gradually reduce the width of interest rate corridor and stabilize the fluctuation of market interest rate.