The Study On Interest Rate Formation Mechanism In China

With the deepening of the reform of interest rate marketization,the government and the central bank began to gradually relax the direct control of interest rates or restrictions,in turn through the capital market supply and demand to determine the level of interest rates.At the same time,the interest rate marketization requires the central bank to control the interest rate is no longer through administrative means to achieve,but the central bank to use their own financial resources,and other financial institutions through market transactions to change the overall financial market supply and demand,By regulating the money market interest rates and thus affect the level of interest rates throughout the market.From the People's Bank of China announced in the third quarter of 2015,China's monetary policy report,China's monetary policy control is from quantitative control to price-based regulation of the way,which means that the central bank's monetary policy began to shift to the interest rate Regulation and control to achieve the purpose of affecting macroeconomic.In the reform process of interest rate marketization,the determinants of interest rate will also change gradually,and will be influenced by other market factors as well as the monetary policy regulation of the central bank.Therefore,after the study of market-oriented reform,what factors affect the interest rate and decision will become an important theoretical and practical significance of the problem.Based on the domestic and foreign references on interest rate,based on the market-oriented interest rate reform in China,Shibor is selected as the representative of market interest rate,and the present situation of its operation is analyzed from the aspects of transaction status,trend and correlation.Secondly,it analyzes the influence factors of the interest rate from the central bank monetary policy tools,other money market interest rates and macroeconomic effects.On the basis of the theoretical analysis,the empirical study is carried out on two aspects:on the one hand,Month of the central bank is repurchase 28-day operation of the successful date of the interest rate data and the date of the 1-month period Shibor interest rates,and in May 2012 to December 2015 the central bank reverse repurchase operation 7-day bid rate and the day 7 This paper makes an empirical study on the effect of the interest rate on the Shibor in the repurchase operation of the central bank.The conclusion shows that the central bank can effectively control the interest rate of the repurchase operation,whether it is the repurchase operation or reverse repurchase operation.Boot Shibor changes.On the other hand,the monthly data from Jan.2007 to Dec.2015 are used to conduct empirical research on the influence of other factors on the market-oriented interest rate Shibor.The empirical results show that the market-oriented Shibor and inter-bank repo repo rate Rep,One-year deposit benchmark interest rate of financial institutions,GDP,a positive correlation between;and the consumer price index and the money supply was negatively correlated;among the inter-bank repo rep Rep is the Shibor Granger the reason.It is concluded that the operation of the market-oriented interest rate Shibor is not only influenced by the monetary policy tools of the central bank,but also influenced by other money market interest rates and macroeconomic factors.In the context of China's interest rate market-oriented reforms,and the central bank's monetary policy is to price-based regulatory transformation of the background,the current central bank open market operations of the main means of repurchase operations,and interest rate policy instruments deposit benchmark interest rate can target interest rate Shibor,Rep is the Granger cause of Shibor,which shows that the benchmarking of Shibor in China's money market needs to be further improved.Finally,based on the current situation of market interest rate,theoretical analysis and empirical results,this paper puts forward some suggestions on how to strengthen the central bank's monetary policy tools to control Shibor and perfect Shibor's benchmark.