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Benchmark interest rate

The benchmark interest rate is an interest rate that has a general reference role in the financial market. Other interest rate levels or financial asset prices can be determined based on this benchmark interest rate level. The benchmark interest rate is one of the important prerequisites for the marketization of interest rates. Under the conditions of interest rate marketization, the financier measures the financing cost, the investor calculates the investment income, and the management's regulation of the macro economy requires objectively a benchmark. The interest rate level is used as a reference. Therefore, in a sense, the benchmark interest rate is the core of the interest rate marketization mechanism.

Among them, the countries with the inter-bank lending rate as the benchmark interest rate include the UK's London Interbank Offered Rate (Libor), the US Federal Benchmark Rate (FFR), Japan's Tokyo Interbank Offered Rate (Tibor), and the EU's Euro Interbank Offered Rate. (Euribor), etc.; countries with the repo rate as the benchmark interest rate include Germany (1W and 2W repo rate), France (1W repo rate), and Spain (10D repo rate).

In China, the interest rate of deposits and loans stipulated by the People's Bank of China on national professional banks and other financial institutions is the benchmark interest rate. Specifically, the general public uses the bank's one-year fixed deposit rate as the market benchmark interest rate indicator, and the bank uses the overnight lending rate as the market benchmark interest rate.

Benchmark rate 2017

2017 central bank benchmark interest rate

Latest in 2017Bank interest rateThe latest bank deposit and loan interest rate adjustment list, Bank Information Port was informed: The People's Bank of China decided to reduce the financial institution's RMB loan and deposit benchmark interest rates from October 24, 2015 to further reduce corporate financing costs.

Among them, the one-year lending benchmark interest rate of financial institutions was lowered by 0.25 percentage points to 4.35%; the one-year deposit benchmark interest rate was lowered by 0.25 percentage points to 1.5%.

The People's Bank of China decided to lower the benchmark interest rates for financial institutions' RMB loans and deposits from October 24, 2015 to further reduce social financing costs. Among them, the one-year lending benchmark interest rate of financial institutions was lowered by 0.25 percentage points to 4.35%; the one-year deposit benchmark interest rate was lowered by 0.25 percentage points to 1.5%; the benchmark interest rates of other grades of loans and deposits, and the PBOC’s interest rate adjustments to financial institutions were adjusted accordingly. Personal housingProvident fund loan interest rateconstant. At the same time, commercial banks and rural cooperative financial institutions will no longer set a floating ceiling for deposit interest rates, and will promptly improve the marketization formation and regulation mechanism of interest rates, strengthen the central bank's regulation, supervision and guidance on the interest rate system, and improve the efficiency of monetary policy transmission.

Since the same day, the RMB deposit reserve ratio of financial institutions has been lowered by 0.5 percentage points in order to maintain a reasonable and sufficient liquidity in the banking system and to guide the steady and moderate growth of money and credit. At the same time, in order to increase financial support for “three rural” and small and micro enterprises, the financial institutions that meet the standards will reduce the deposit reserve ratio by 0.5 percentage points.

The benchmark interest rates for other grades of loans and deposits were adjusted accordingly. (This interest rate is the latest bank interest rate in 2017, the new benchmark interest rate for bank deposit loans)

What is the benchmark interest rate?

The benchmark interest rate is an interest rate that has a general reference role in the financial market. Other interest rate levels or financial asset prices can be determined based on this benchmark interest rate level. The benchmark interest rate is one of the important prerequisites for the marketization of interest rates. Under the conditions of interest rate marketization, the financier measures the financing cost, the investor calculates the investment income, and the management's regulation of the macro economy requires objectively a benchmark. The interest rate level is used as a reference. Therefore, in a sense, the benchmark interest rate is the core of the interest rate marketization mechanism.

Benchmark interest rate adjustment schedule

Loan benchmark interest rate

The deposit and loan benchmark interest rate is the loan-directed interest rate issued by the central bank (People's Bank of China) to commercial banks, and is one of the monetary policies used by the central bank to regulate the operation of the social economy and financial system.

Commercial banks will set a combination of deposit rates based on this benchmark interest rate. Raising the benchmark interest rate means shrinking credit, reducing social mobility, increasing credit costs, and easing economic growth. vice versa.

Corporate loan benchmark interest rate

People's Bank of China corporate loan benchmark interest rate standard

The loan interest rates implemented by different banks are different. Under normal circumstances, the bank corporate lending rates are all based on the central bank's benchmark interest rate, and the extent of each bank's floating is different. In particular, the borrower needs to rely on the inquiry. The regulations of the People's Bank of China shall prevail.

The People's Bank of China decided to lower the benchmark interest rates for financial institutions' RMB loans and deposits from October 24, 2015 to further reduce corporate financing costs. At present, the benchmark interest rate for deposits and loans implemented by the People's Bank of China is based on the interest rate announced on October 24, 2015: the one-year lending benchmark interest rate of financial institutions is lowered by 0.25 percentage points to 4.35%; the one-year deposit benchmark interest rate is lowered by 0.25 percentage points. 1.5%.

With the adjustment of the central bank's loan interest rate, the loan interest rates of major banks have also changed. As a company, the interest rate of bank corporate loans directly affects the cost of enterprises. Corporate loans refer to a form of borrowing by banks or other financial institutions in accordance with the prescribed interest rates and maturities for the purpose of production and operation.