| This paper researches on how to choose the benchmark interest rate in China under the background of deregulation of deposit and loan interest rates and the deepening of the degree of interest rate liberalization. In the definition of the benchmark interest rate,the paper hold a viewpoint that none of the interest rates is doomed to be he the benchmark interest rate,and it is the relationship with the other interest rates makes an interest rate to be the benchmark interest rate. The choosing of the benchmark interest rate is in large affected by the financial structure in one country. Under the definition of the benchmark interest rate,there are five characters, the market representatives,to be the pricing basis,being controllable to the central bank, the relevance to real economy,and the combination of inflexibility and stability,that the benchmark interest rate must holds. And analyzing the most of interest rates with the five characters of the benchmark interest rate,choosing China Interbank Offered Rate(CHIBOR),Shanghai Interbank Offered Rate(SHIBOR),Interbank repo rate(REPO),Bond yield rate(BOND),and the benchmark deposit rate(DEP),then using the historical data and empirical analysis, making a comparison among them. Finally adding up with the different weights,giving to the different characters according to their relatively importance. The result shows that Interbank repo rate(REPO) is the most suitable rate to be benchmark interest rate,and the second best is Shanghai Interbank Offered Rate(SHIBOR) and the benchmark deposit rate(DEP). At last,giving some advises about the cultivating of benchmark interest rate. |
