Home » Central Bank: Continue to further promote the market-oriented reform of interest rates and continue to release the efficiency of LPR reform – yqqlm

Central Bank: Continue to further promote the market-oriented reform of interest rates and continue to release the efficiency of LPR reform – yqqlm

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Central Bank: Continue to further promote the market-oriented reform of interest rates and continue to release the efficiency of LPR reform – yqqlm

In the next step, the People’s Bank of China will continue to further promote the reform of interest rate marketization, continue to release the efficiency of LPR reform, strengthen the supervision of deposit interest rates, give full play to the important role of the marketization adjustment mechanism of deposit interest rates, and promote the degree of interest rate marketization.

Viewpoint News:On September 20, the official WeChat account of the People’s Bank of China released an article signed by the Monetary Policy Department “Deeply Promote the Reform of Interest Rate Marketization”, which mentioned that the People’s Bank of China will continue to further promote the reform of interest rate marketization, continue to release the efficiency of LPR reform, and strengthen the supervision of deposit interest rates. Give full play to the important role of the market-based adjustment mechanism for deposit interest rates.

Viewpoint New Media was informed that the article stated that the reform of interest rate liberalization is one of the most important reforms in the financial sector. Since the 19th National Congress of the Communist Party of China, the People’s Bank of China has continued to deepen the market-oriented reform of interest rates in accordance with the decisions and arrangements of the Party Central Committee. Focus on promoting the reform of the loan market quoted rate (LPR), establish a market-based adjustment mechanism for deposit interest rates, and use the reform method to push the actual loan interest rate down significantly. Improve the central bank’s policy interest rate, cultivate and form a relatively complete market-oriented interest rate system. At the same time, adhere to the implementation of inter-cycle interest rate regulation with the natural interest rate as the anchor, give play to the decisive role of the market in the formation of interest rates, and create a suitable interest rate environment for high-quality economic development.

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The article pointed out that the loan and deposit interest rates should be further marketized. The first is to promote the reform of the loan market quoted rate (LPR), and the second is to establish a market-based adjustment mechanism for deposit interest rates.

The article pointed out that the formation and transmission mechanism of market-oriented interest rates should be improved. The first is to continuously improve the central bank’s policy interest rate system, and the second is to build a relatively complete market-oriented interest rate system and interest rate transmission mechanism.

The article mentioned that my country’s monetary policy has always adhered to the principle of self-centeredness and static braking to guide the level of market interest rates to be stable and moderate, and the effect is good. At present, my country’s fixed deposit interest rate is about 1% to 2%, and the loan interest rate is about 4% to 5%. The real interest rate is slightly lower than the potential actual economic growth rate, which is at a relatively reasonable level and is the best strategy to leave room. At present, my country’s economic growth, price level, employment status, international balance of payments and other monetary policy control objectives are all operating within a reasonable range, and the actual effect has fully verified that my country’s current interest rate level is generally within a reasonable range.

The article emphasizes that we will insist on giving play to the decisive role of the market in the formation of interest rates. To promote the market-oriented reform of interest rates, we must always adhere to the decisive role of the market in the formation of interest rates. In terms of loans, the People’s Bank of China fully respects commercial banks’ pricing power over loan interest rates and their right to float interest rates, and the bank will negotiate with the borrower’s credit risk, loan term and other factors to determine the loan interest rate. In terms of deposits, the People’s Bank of China also follows the principles of marketization and the rule of law, and commercial banks set prices independently.

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In the next step, the People’s Bank of China will continue to deepen the reform of interest rate marketization, continue to release the efficiency of LPR reform, strengthen the supervision of deposit interest rates, give full play to the important role of the market-oriented adjustment mechanism of deposit interest rates, promote the improvement of the degree of interest rate marketization, and improve the formation and transmission of market-oriented interest rates. mechanism, optimize the central bank’s policy interest rate system, give full play to the adjustment role of the interest rate lever, promote the optimal allocation of financial resources, and create a favorable environment for high-quality economic development.

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