The Research Of China’s Central Bank Open Market Operations To Guide Monetary Market Benchmark Interest Rate

The overall goal of interest rate marketization is to establish and perfect the interest rate formation mechanismis determined by market supply and demand, the central bank guides and regulates the market interest rate through the use of monetary policy tools, financial institutions determine the price of the assets and liabilities system according to market interest rates. At present, further consummates our country interest rate structure and interest rate mechanism is of great significance.In recent years, influenced by various macroeconomic factors, China’s monetary market interest rate volatility often appear, makes the financial institutions face the sudden increase of interest rate risk, and it is not conducive to the stable operation of the financial market.This requires the central Banks effectively use various monetary policy tools to help ease monetary market interest rate fluctuations, guide the formation of the monetary market benchmark interest rate. China’s central bank’s monetary policy is given priority to quantitative control, but with the advancement of interest rate marketization, open market operations of price regulation has gradually become an important tool of the central Bank to control money market interest rates and guide the benchmark interest rate.Based on the collected numerous domestic and foreign scholars on the central bank’s monetary policy guidance and control to money market benchmark interest rate, This paper carries on the concrete research to the central bank open market operations’s guidance of monetary market benchmark interest rate formation mechanism This paper combines the theory and empirical evidence, comparison and analysis method.This paper’s structure is as follows:the first chapter mainly introduces the paper’s topic background, research significance, research status at home and abroad, this paper’s research methods and innovation points and deficiencies. The second chapter introduces the principle and the main method of our country central bank carrying out open market operations. The third chapter enumerates the main interest rate of money market in our country and carry out the experience and empirical analysis to the fundamental, relevance, stability, measurability and controllability of national inter-bank bond repurchase rate REPOR and Shanghai interbank interest rate SHIBOR in order to get the current money market’s most representative benchmark interest rates.The fourth chapter using the impulse response method to study the mechanism of central bank open market operations in China in guiding and controling money market benchmark interest rate. The fifth chapter puts forward some measures to improve the central bank’s monetary market benchmark interest rate mechanismin combine with the actual situation of China’s financial market development to effectively promote the marketization of interest rate.