China's Interest Rate Market Research

The change of interest, which will constantly affect the currency supply & demand and the total currency amount in the economical cycle, will greatly impact economy development. The function has been called as interest level function. Now in modem economical development many countries used interest as the target of their monetaly police. In order to keep the value of currency and improve economy growth Central Banks adjust their monetaiy police to convert total currency amount according to the change of market interest. The thesis studied the role, the function and the tendency that interest should play in China based on the import role that interest played and interest reformation experiences in other countries. It described the progress of market interest setup and the positive effect to China economy from China reformation It also pointed out issues existed and presented suggested solutions. Hope it could have some reference value to China finance reformation, especial to the reformation of market interest setup.