The micro factors of interest rate personal finance are because:

1. If it is a loan for investment, then the current rising loan interest rate will increase the investment cost, thus increasing the repayment risk. Simply That is to say, interest rates are inversely proportional to returns and directly proportional to risks.

2. If you are investing your own funds, then the actual interest rate of bank deposit interest rate and government bond interest rate (actual interest rate = interest rate - CPI) is the yardstick for measuring investment performance.

The interest rates of banks and government bonds are the test standards for successful and effective investment.

Micro factors of personal finance:

(1) The degree of competition in the financial market: When market demand is relatively stable, the more financial institutions that provide similar products, the more business innovations of competitors will The faster and more advanced the marketing methods, the greater the pressure commercial banks will face to develop personal financial management business.

(2) The degree of openness of the financial market: An open financial market provides the necessary conditions for the continuous innovation of commercial banks’ personal financial services. At the same time, the improvement of market openness has put forward higher requirements for commercial banks to manage risks in personal financial services.

(3) The price mechanism of the financial market: A series of price indicators in the financial market have an important impact on the pricing of financial products, especially the level of interest rates. Interest rates include legal interest rates and market interest rates. Market interest rates are a true reflection of the cost of borrowing funds in the market. Pay attention to the distinction between nominal interest rates and real interest rates. Only under the premise that the price level remains unchanged, different nominal interest rates can truly reflect the difference in the actual rate of return obtained by investors investing in financial products.