Analysising The Effect Of China’s Interest Rate Policy

The interest rate is an important tool for the central bank,which is a very crucial toolin our countery monetary.From2006to2010,the People’s Bank of China adjusted thebenchmark deposit and loan interest rates for fifteen times.In this five years,the interestrates have the characters that are frequency and smally.Those characters showed that thePeople’s Bank of China’s ability level had developed,but also saw that interest rate had ahigher position in economy.But in theory and practice,the interest rate’s effect have a biggap.So the interest rate is not the most important tool in China.The root reason that ourcountry have not realing the marketization of interest rate,which the transmission ofinterest rate have blocking factors.The policy should have spend a period of time toreflect the really result.And the question that is could the interest rate achieve the purposein this five years.So,the paper has an important theoretical and practical significance.In this paper the deposit and loan interest rates level which is the paper’s researchobject,and through the comparative method, graphic method and literature researchmethods to research2006to2010interest rate adjustment effect. Firstly, according tothe characteristics of China economic development,the paper cut three terms to review ofinterest rate policy’s background.Then, focusing on the reason about interest ratesfrequent adjustment.And give the answer that the United States of America financialcrisis is the adjustment of interest rate policy of the accidental factors; the appreciation ofthe renminbi is the adjustment of interest rate policy linkage factors; the domesticeconomic situation is the adjustment of interest rate policy decision factors.Thirdly,analysising the effect on behavior of commercial bank, savings, real estate market andthe stock market impact. Finally, put forward to four proposals to enhance China’s interest rate policy effectiveness.To strengthenour country’s interest rate policy effect, our country should continue todeepen market-oriented,develop the effectiveness of China’s monetary policy,exchangethe government functions, respect market rule and so on.So that the policy can build themechanism.But the fundamention that should rely on market oneself to achieve balanceddevelopment.