Research On Inter-Bank Repurchase Rate In China

Interest rate is the key factor in currency markets.It indicates the information of money and guides the direction of investment.In-bank repurchase rate has been an important part of our interest rate system. We analyze it from three aspects:influenced factors,running effect and benchmark.We select CPI,M2,Exchange rate as influenced factors,using data from 2003 to 2013 to make VEC model.Finding 1%CPI only changes 0.41% 7 day Inter-Bank Repurchase Rate. Be along with social progress,people’s consumption is more rational. M2 includes short-term and long-term money supply when 7 day Inter-Bank Repurchase Rate is a short-term interest rates,so M2 has a weak influence on 7day Inter-Bank Repurchase Rate.At present, our country is strict with foreign exchange,large-scale exchange between foreign and RMB is forbidden which results less impact on Inter-Bank Repurchase Rate.We choose real estate as factor,using data from 2003 to 2013 to make quantile regression model to research its running effect.The immaturity of real estate leads to positive relationship between inter-bank repurchase rate and real estate.We analyze benchmark of inter-bank repurchase from marketability,benchmark, correlation and stability aspects,finding it’s a good choice to be the benchmark interest rate.