1. Different subjects: The Central People's Bank is the subject of RRR reduction, and the reduction of the statutory deposit reserve ratio will affect the number of banks' loanable funds, thus increasing the credit scale, increasing the money supply, releasing liquidity and stimulating economic growth. The main body of interest rate cuts is commercial banks, and interest rate cuts are conducive to lending funds to the society.
2. Facing different groups: the RRR cut is targeted at commercial banks, and the business handled by the central bank is targeted at commercial banks. Reducing RRR is a policy adopted by the central bank for commercial banks. The beneficiaries of interest rate cuts are enterprises and individuals, and the business handled by commercial banks is aimed at enterprises, individuals and other groups. Interest rate reduction is a policy adopted by commercial banks for social groups.
3. Different ways of action: RRR interest rate cuts can release the margin of commercial banks in the central bank, increase the supply of funds in the market, and help stimulate the production process. RRR cut interest rates in order to release the liquidity of the banking industry and make more money in the market; Reducing interest rates does not increase the amount of market funds, but it can change the investment of funds.
4. Banks are legally established financial institutions engaged in monetary and credit business, which are the products of the development of commodity monetary economy to a certain stage. Banks are one of the financial institutions. Banks are divided into central banks, policy banks, commercial banks, franchised institutions, investment banks and the World Bank, each of which performs its own duties.