A Comparative Study Of The Influence Of Adjustment Of Interest Rate And Deposited Reserve Ratio On Stock Market

The stock market is a “barometer” of the economy,and it is increasingly important for the economy,and it is against the backdrop of the Fed’s interest rate hike cycle and the changing environment at home and abroad.This article has a strong practical significance to explore the impact of changes in interest rates and reserve requirements on the stock market.First of all,this article reviews the relevant literature from the perspective of the relationship between monetary policy and capital market,the conduction mechanism of monetary policy and the effectiveness of monetary policy.Based on this,it discusses the theoretical analysis of the impact of monetary policy on the stock market.The relevant literature research methods,respectively using event research methods and the establishment of vector autoregressive model to verify the interest rate and deposit reserve rate policy changes on the stock market in the short-term and long-term impact.Interest rate and deposit reserve ratio policy adjustments have an impact on the stock market.The same point is that it will affect the liquidity of market funds further by affecting the money supply,and ultimately affect the stock market’s yield,affecting the stock market price,but In the short and long term,the impact of interest rates and deposit reserve ratios on the stock market is not the same.From the short-term results,most adjustments in the reserve requirement ratio occur in the case of significant economic changes,mainly to smooth out the risks brought about by economic fluctuations and promote economic growth,thereby realizing the ultimate goal of monetary policy.Specifically,adjusting the deposit reserve ratio will have a negative effect on the stock market yield.Conversely,reducing the deposit reserve ratio will have a positive effect on the stock market yield,due to the announcement based on the adjustment of the deposit reserve ratio.The effects of effects,money supply effects,and interest rate effects.However,in the empirical analysis of 10 incidents,there were two anomalous phenomena.The main reason was that there were many factors affecting the stock market,and sometimes the control of monetary policy was "economic growth,price stability,full employment,balance of international payments".A variety of policy goals for the purpose.However,the empirical results show that the adjustment of interest rate policy,the central bank is more to carry out counter-cyclical adjustments.Specifically,under the policy of the central bank raising interest rates,the stock market’s yield has risen.Under the policy of rate cuts,the stock market’s yield has declined.The central bank’s interest rate increase behavior indicates that market investment is in an overheated stage and needs to return to rationality.Conversely,a rate cut indicates that the central bank believes that the economy is at the bottom and needs further stimulation.The stock market price reflects investors’ expectations for the future stock market.When the central bank adjusts interest rates,investors are more concerned about the good expectations of the stock market in the future,followed by the interest rate increase.Bad effect.From a long-term perspective,from the perspective of the relationship between supply and demand changes and the stock market,the money supply M2 is positively correlated with the stock market.At the same time,interest rates are taken as the opportunity cost between the entities and the financial sector.There is a significant negative correlation between interest rate changes and the stock market.From the perspective of the relationship between money supply and demand and monetary policy,both reserve requirements and interest rates have a negative correlation with changes in money supply,but changes in reserve requirements are more pronounced,which is in line with the short-term empirical results.There is no significant effect of interest rate on Granger’s fruit test,which shows that in the long run,it is in line with the relatively low interest rate elasticity of China’s stock investment.Finally,it summarizes the results of the full-text study,and strengthens the central bank’s macro-control capabilities,actively promotes the process of interest rate liberalization,accelerates the reform of the deposit reserve system,optimizes the financial environment,and strengthens the link between monetary policy and other policies.Out of advice.