(1) economic cycle. Crisis stage: interest rate rises; Depression stage: lower interest rates; Recovery stage: low interest rate; Prosperity stage: the interest rate was not very high in the early stage, but it rose before the crisis.

(2) inflation. It will lead to the depreciation of loan capital and the decline of real interest rate, so it is necessary to raise interest rates.

(3) taxation. The interest tax rate directly affects the interest rate.

Policy factors:

Since the great economic crisis in the capitalist world in 1930s, capitalist countries have generally pursued the policy of state intervention in the economy, in which interest rates have become an important tool for the state to implement macro-control over economic activities. The central banks of modern market economy countries regard adjusting interest rates as an important means to adjust credit and thus adjust the economy.

By stipulating differential interest rates and preferential interest rates, we will support key industries, departments or projects, and then realize the adjustment of industrial structure, ensure the coordinated development of the national economy, and complete the expected economic goals of the country; By setting and adjusting the official interest rate, the interest rate change of the whole market can be influenced. Therefore, the national economic policy has an important impact on interest rates.

Institutional factors:

Mainly interest rate control. In the extraordinary or underdeveloped stage of a country's economy, interest rate control is also an important factor affecting interest rates. The relevant government departments implement interest rate control and directly set the boundaries of interest rates or interest rate changes.

Because interest rate control has a high degree of administrative intervention and legal constraints, it excludes the direct influence of various economic factors on interest rates. Therefore, the scope of interest rate control is limited. Once the extraordinary period is over or the economy has stepped out of the underdeveloped stage, it should be lifted in time.

The influence of international financial market:

An important feature of modern economy is the internationalization and integration of the world economy. In an open economic system, international economic ties make the domestic market interest rate deeply influenced by the international market interest rate. This influence is achieved through international capital flows.

When the international market interest rate is higher than the domestic interest rate, domestic monetary capital flows abroad. On the contrary, when the international market interest rate is lower than the domestic interest rate, monetary capital flows into China.

No matter whether the domestic interest rate is higher or lower than the international interest rate, under the condition of free capital flow, it will cause changes in the supply and demand of funds in the domestic money market, thus causing changes in domestic interest rates.

Risk factors:

It mainly includes default risk, liquidity risk, repayment period risk and policy risk.

Extended data:

Overview of changes in monetary interest rates;

The change of interest rate is the main factor of the price change of all fixed income securities. Generally speaking, securities prices change inversely with interest rates, that is, when interest rates rise (fall), securities prices will fall (rise).

If the investor holds the securities until the maturity date, the price change before the maturity of the securities will not affect the investor; However, if investors sell securities before the maturity date, the increase of interest rate will lead to the loss of capital gains.

Generally speaking, other things being equal, the higher the coupon rate of a security, the more sensitive its price is to the change of interest rate. Or the longer the term of a security, the more sensitive its price is to the change of interest rate; In other words, the lower the interest rate level, the more sensitive the securities price is to the change of interest rate.

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