Interbank Offered Rate As A Benchmark Interest Rate In The Feasibility Study

One of the key factors of the interest rate liberalization reform is to find the proper basic interest rate, and to build a system with reasonable interest rate of market on the basis of basic interest rate. It is very important to choose and cultivate appropriate base rates of interest for interest rate liberalization. This paper studies the international principle and practice of developing base rates of interest, analyzes the relative problems in China.Usually, The most proper basic interest rate is the inter-bank market rate in the world. In this paper, we use Granger Causality Test and Augmented Dickey-Fuller Test. Autoregressive Integrated Moving Average Model for analyzing the relationship between other interests and inter-bank market rate, research the dynamic sensitive reaction of the inter-bank market rates, analyzes the various factors to make the inter-bank market rate basic interest rate. At last, This paper proposes some strategies and suggestions of promoting inter-bank market rate to become basic interest rate, and points out ways of improving the situation.