1. What does bp mean in the interest rate?
Bp of interest rate is the base point. Bp refers to the unit of measurement of interest rate changes of bonds and bills, which is used as the basis point (bp) in finance. 1 basis point is equal to 0.0 1%, that is, 1% 1%. The base point is usually abbreviated as "BP/BPS". The financial industry usually uses the basis point to express the interest rate change of financial instruments or the difference between two interest rates (including the yield of fixed-income securities). Because some loans and bonds may usually be related to some indexes or underlying securities, they are usually quoted at indexes (or below). For example, a loan with an annual interest rate exceeding 0.50% of LIBOR is said to be 50 basis points higher than LIBOR, which is usually expressed as "L 50bps" or "L 50 for short".
Second, the new standard of deposit interest rate has come.
The news that the deposit interest rate ceiling will be adjusted caused great concern over the weekend. On June 2 1 day, the secretariat of the market interest rate pricing self-discipline mechanism released relevant news on its official micro-signal. The announcement shows that since June 2 1 day, the method for determining the self-discipline upper limit of deposit interest rate has changed the self-discipline upper limit of deposit interest rate, which was originally formed by a certain multiple of the deposit benchmark interest rate, to a certain basis point based on the deposit benchmark interest rate. After the news fell, the capital market was generally calm, and the Shanghai Composite Index closed at 3,529 points, up 0. 12%. Bank index fell 1.08%. The market reaction to this matter is relatively stable. For demand deposits, the interest rates of the four major banks are not higher than the benchmark interest rate plus 10BP, and the patient institutions are not higher than the benchmark interest rate plus 20BP. The adjusted interest rate of large banks is not higher than the benchmark interest rate plus 50BP, and that of patient institutions is not higher than the benchmark interest rate plus 75BP. Large certificates of deposit require that the adjusted interest rate of large banks should not be higher than the benchmark interest rate plus 60BP, and other institutions should not be higher than the benchmark interest rate plus 80BP.
In short, under the expectation of long-term interest rate operation, some interest rate-sensitive deposits may migrate to other asset management products, which is expected to benefit the capital market from both expectations and funds.