When the central bank cut interest rates, it lowered benchmark interest rates, including deposit benchmark interest rate and loan benchmark interest rate. The most direct impact is: when you come to the bank to save money, the deposit interest rate becomes lower; The original monthly payment began to decrease.
In addition, after the central bank cuts interest rates, ordinary people will be reluctant to save money because of the low deposit interest rate. Enterprises are more willing to borrow money because the loan interest rate is low. More and more funds in the market will promote economic prosperity.
After the economic prosperity, we will see two major influences: one positive and the other negative.
It is no small matter for any country to cut interest rates. Take China as an example. Since the central bank cut interest rates in June 20 15, it hasn't cut interest rates in the past four years. The central bank began to use the strategy of reducing RRR to balance economic development.
RRR's interest rate cut means reducing the deposit reserve ratio, that is, the reserves that banks need to deposit with the central bank are reduced. Banks have more money to lend. This will not only ensure that the deposit interest rate remains unchanged, but also ensure that enterprises can obtain more funds and promote development. Compared with interest rate reduction, RRR has a narrower scope and a clearer purpose.
Any policy has both positive and negative incentives. There are also good and bad influences, so we should treat this problem dialectically.
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The central bank cut interest rates mainly to stimulate lending. For ordinary people, the most direct impact is that your mortgage will reduce expenses.
If you look deeper, you can choose an investment to fight inflation by how to preserve your cash assets.
1, interest rate cuts are diluting the purchasing power of cash.
If the central bank cuts interest rates, it will generally stimulate the activity of the credit market, which means that many people will borrow money to buy assets.
When everyone is borrowing, the money circulating in the market will increase, and the cash of non-borrowers will be diluted. At this time, for ordinary people, although the money in your pocket is there, the purchasing power is declining.
What is the relationship between interest rate cuts and pocket money? This is very important.
Take our broad money as an example. In 2000, it was about 13 trillion. Today, 20 years later, the scale of broad money has reached 193 trillion. If you had 1000 yuan 20 years ago, you could buy a house of 3 square meters in a third-tier city; After 20 years, you can buy a toilet lid in the bathroom at most.
In the past 20 years, China's interest has been on the decline.
A bowl of noodles may have been around 5 yuan 20 years ago; Today, 20 years later, 15 yuan can buy a bowl of noodles.
This is the impact of interest rate cuts on ordinary people.
2. How to realize asset appreciation
The purpose of lowering interest rates is to encourage investment, that is, to encourage everyone to invest in loans.
For 20 years, many people have been enjoying this bonus and are also worried about it.
When we buy a house, we usually use leverage to buy a house. That is, 30% down payment and 70% loan to buy a house. Based on the property of 6,543,800,000 yuan, we only paid 300,000 yuan, and the rest was completed by loans. In other words, every time we buy a house, we add 70% capital to the market according to the value. There is more and more money, but the purchasing power of money is declining.
In the past, as long as people bought a house, they basically realized the appreciation of their assets, which can be said to resist the engulfment of inflation.
In the process of interest rate reduction, if you want to maintain the purchasing power of cash, the best choice is to invest in assets with liabilities.
In the real world, if you don't know how to invest, your cash purchasing power will be smaller and smaller.
But it must be noted that it is not always possible to choose investment.
3. When the interest rate rises, choose to hold money.
The interest rate is the cost of using money. Generally speaking, the higher the interest rate, the more valuable the cash is.
When the interest rate is low, choose debt to buy assets; When the interest rate is high, choose assets for cash.
In ancient China, there was an investment sage who was later honored as the God of Wealth. His name is Fan Li. His investment philosophy is that what is expensive is soil, and what is cheap is given priority to. This is a very simple and affordable investment science.
When everything feels expensive, then change everything into money (property market); When something is cheap, exchange it with money and wait for the price to rise (stock market)
When the interest rate is expensive, choose to hold money; When the interest rate goes down, choose a loan to buy assets.
The above is my opinion. If interest rates fall, you must learn to manage your money. If interest rates go up, you must learn to hold money.
Tell the truth, tell the truth, no nonsense, no rhetoric. Let's say something that everyone can understand today. Hello, everyone, I'm your headmaster.
If the central bank cuts interest rates, how will the people be affected? Obviously, the most direct impact is the economy, which is linked to money. To put it bluntly, deposits and loans are affected, but in fact, investors' investment will also be affected.
In fact, the impact of interest rate cuts on ordinary people is not extensive, but for entrepreneurs and the rich now, the impact is relatively extensive, and the richer the people, the deeper the impact.
The so-called interest rate cut is to lower the deposit interest rate in the bank. For example, you used to go to the bank from 6,543,800 yuan, and the annual interest may be 5,000 yuan. After lowering the interest rate, the interest you deposit in the bank for one year may only be 2000 to 3000 yuan.
At this time, most people will take money out of the bank for other investments with higher returns, which is in line with the purpose of the bank's macro-control to cut interest rates, release a lot of liquidity to the market, and at the same time trigger the rise of house prices or the stock market.
But for ordinary farmers, the impact is not great. They basically solve the problem of food and clothing, do not have much savings, and have no awareness of investment and financial management.
Whether it is raising interest rates or lowering interest rates, for ordinary farmers, money still exists in the bank, which is nothing more than an increase or decrease in income and will not have much impact on life.
Because there are great risks in the current property market and stock market and great uncertainty in investment, most working-class people still choose time deposits or certificates of deposit.
If the history is further reduced after the interest rate cut, perhaps they will spend their money, or invest in real estate or stock market, thus pushing the house price and stock market to a new height.
Working-class people have a strong sense of investment and financial management, and can invest in real estate, which is the first choice after interest rate cuts. Some risk-averse working-class people choose to invest in the stock market. At this time, real estate and the stock market will show a continuous upward trend.
On the one hand, it promotes consumption, on the other hand, it also stimulates domestic demand, which is killing two birds with one stone for the national macro-control policy.
After interest rate cuts, consumption increases and income increases accordingly, which leads to currency depreciation to some extent, which in turn leads to inflation. So under normal circumstances, interest rate cuts will not be carried out.
On the whole, interest rate cuts only have a greater impact on the rich, and are basically indifferent to ordinary farmers, and have a far-reaching impact on ordinary working-class people in cities.
Interest rate reduction is often a financial macro-control policy, which can get twice the result with half the effort if used properly, and get twice the result with half the effort if used improperly.
Interest rate reduction refers to the financial way that the central bank uses interest rate adjustment to change cash flow. When banks cut interest rates, the income of funds deposited in banks will decrease, so cutting interest rates will lead to the outflow of funds from banks, and deposits will become investment or consumption, which will lead to increased liquidity of funds. The impact of the central bank's interest rate cut on the people will mainly be reflected in the following three aspects:
The interest income of depositors in the bank will also decrease accordingly. For ordinary people who like to deposit their money in the bank, it is a disadvantage to cut interest rates. Similarly, due to the decline in interest rates, the financial interest rates of banks and some investment institutions will also be lowered accordingly.
When the central bank cuts interest rates, in addition to the deposit interest rate, the loan interest rate will also be lowered, so this is good news for individuals and institutions with loans in banks, because they need to pay less loan interest every month.
The central bank's interest rate cut will reduce the cost of capital and directly affect all walks of life. It mainly benefits from industries with high asset-liability ratio or high liquidity pressure, such as real estate, cement, building materials and steel. It is also good for the stock market and bond market, because funds will flow out of banks. Of course, the reduction of loan cost also gives people more motivation to start a business and invest to get more investment income.
Interest rate cuts will lead to an increase in the money supply in the market, which will lead to an increase in commodity prices and labor costs and easily lead to inflation. Therefore, the central bank will adjust the market economy by cutting interest rates, so as to maintain the sustained, rapid and healthy development of the national economy.
How ordinary should ordinary people be? If a person does not manage money, has no loans, spends frugally or has no major expenses, such as young people who have just entered the society or are still students, or even the elderly, it will hardly be affected.
The interest rate cut by the central bank will directly affect the adjustment of the deposit and loan interest rates of commercial banks, that is, the deposit and loan interest rates of commercial banks are the result of a certain fluctuation on the basis of the benchmark interest rate-the impact on different people is different.
Not only the deposit interest rate of commercial banks is affected by the benchmark interest rate of the central bank, but also the income of almost all wealth management products is affected by the benchmark interest rate of the central bank. Because there is a chain reaction here, the benchmark interest rate of the central bank affects the deposit interest rate of commercial banks, and the deposit interest rate of commercial banks forms the market interest rate, which in turn affects the wealth management income.
For example, the main investment targets of low-risk and medium-low-risk wealth management products are short-term monetary instruments and high-quality bonds. The downward trend of market interest rate will inevitably affect the downward trend of short-term monetary instruments, such as central bank bills, government bonds and interbank deposits. In bond trading, when the market interest rate drops, the price of bonds will rise, thus reducing the yield of bonds. For example, if the interest rate goes down, the price will rise above 97, but only 100 yuan can be recovered at maturity, that is, the yield will drop.
Because the return on investment targets is declining, and wealth management products are composed of many investment targets, the return on wealth management products will inevitably decline. That is, interest rate cuts are not conducive to users or ordinary people with cash assets, and the corresponding investment income will be reduced.
If it is bad for investors, it is good for lenders, especially long-term lenders or lenders who are about to lend. The reason is that long-term loans usually use floating interest rates, such as mortgages (more than five years). In this way, the loan interest rate will rise or fall on the basis of the benchmark interest rate, and the interest rate of interest-cut loans will also rise. People who are about to borrow money will adopt new and lower loan interest rates with the adjustment of commercial bank interest rates, especially the fixed interest rates adopted in the short term, which will not be adjusted with the subsequent interest rate increase.
The loan interest rate is low, and the operating costs of enterprises are reduced. Therefore, under full market competition, commodity prices will be reduced, which is conducive to consumers buying more commodities at lower prices.
On the other hand, it can improve people's consumption level, thus improving people's quality of life, forming a virtuous circle and further promoting economic development. For example, if goods sell better, enterprises will produce more products, thus promoting a win-win situation for consumers and enterprises.
In essence, cutting interest rates will not increase the money supply (reduce RRR), but will increase the money flow rate, thus increasing inflation. In other words, if the interest rate is controlled within a reasonable range, it will not lead to high inflation, but too high or too low interest rate will lead to inflation.
When the interest rate is higher, the commodity price is higher, people will be relatively frugal, and the income from financial management will be higher, so they will conduct corresponding financial management; In terms of loans, too, loans reduce expenses because of higher interest rates, and enterprises will narrow their business scope and be relatively conservative. Then both depositors and lenders are negative, the speed of money flow will be reduced and inflation will be lower; However, a vicious circle is formed, and the low flow rate of money will push up inflation, because no one is willing to spend money, and the currency gradually loses its circulation property.
And if the money flows too fast, it will increase the money supply in the market. Everyone is afraid that the devaluation of the currency in their own hands will further promote the increase of wages and consumption. Then inflation will occur, and everyone wants to get more income to make up for the decrease in investment and financial management, thus raising commodity prices in disguise.
In a word, too low or too high interest rates will lead to inflation, so the central bank will constantly adjust the benchmark interest rate to adjust the market economy to prevent the economy from overheating or supercooling, so as to adjust inflation too high or too low.
1: In terms of impact, let's make an analogy here: For example, someone has deposited 1000 yuan in the bank this year, and it will still be 1000 yuan next year, but next year's 1000 yuan will not be 1000 yuan this year because of the price increase next year. On the one hand, interest rate is the compensation for inflation. If Yang Ma takes the initiative to cut interest rates, it means that the rate of return on capital will drop, and a large amount of money will circulate in the market, which will increase liquidity in the process of supply and demand and lower the rate of return on assets as a whole.
2. It is beneficial to enterprises or individuals who borrow money, because the loan interest is low, the financing cost will be reduced accordingly, which will promote economic development, allow more capital to flow into the market, increase investment and increase employment opportunities, but it will also affect inflation to a certain extent.
Generally speaking, reducing interest rates will lead to excessive currency circulation, increase the money supply in the market, devalue the currency and promote the rise of wages and consumption, so the so-called inflation will naturally occur. Therefore, the central bank regulates economic development by constantly adjusting the market interest rate to prevent inflation from being too high or too low due to overheating.
The central bank's interest rate cut has the following effects on the people:
First of all, depositors
If the central bank cuts interest rates, it will also cut the deposit interest rate accordingly. If the deposit interest rate falls, the interest income earned by depositors will decrease and the currency will depreciate faster. Therefore, cutting interest rates is not good for depositors.
Second, the lender
It is beneficial to lenders, because the loan interest is lower and the financing cost is lower, which is beneficial to enterprises or individuals to lend money to do entity investment activities and promote economic development.
Third, people who don't borrow or save.
For those who have no money to deposit or borrow, interest rate cuts will also allow more capital to flow to the market, increase investment and increase employment, but it will also affect inflation to a certain extent. After all, more money has flowed to the market, and if the goods on the market are in short supply, the price will rise. Wages will also rise accordingly, and enterprises with low financing costs will raise wages and attract talents.
The interest rate cut by the central bank is used to stimulate investment in the case of frequent contraction of investment. Whenever the investment is overheated and the economic expansion is too fierce, it will raise interest rates to cool the overheated investment, which is not good.
Therefore, the impact of interest rate cuts is different for different people, but generally speaking, it is a monetary policy made to make it develop steadily and healthily, maintain economic and social stability and price stability.
Release liquidity, reduce the capital cost of industrial and commercial enterprises, and share investment promotion experience. After all, banks will pay a lot of money, and by cutting interest rates and investing in industry or other aspects, it can also promote employment and make it easier to find a job. But also for some industries with large capital capacity, such as real estate. At the same time, interest rate reduction also means currency depreciation, and the decline of exchange rate is more conducive to export and export-oriented processing trade, and interest rate reduction.
Secondly, look at the disadvantages of interest rate cuts:
To reduce property income, interest rate is the profit benchmark of all walks of life. If it is reduced, others will also be reduced, such as property income closely related to everyone, including housing rent and labor value wages. It may lead to rising prices, more money can be spent on the market, and prices will naturally rise ... Especially it will have a certain impact on the financial industry, and the interest of banks and the income from wealth management will be reduced accordingly, thus the risk will increase relatively. At the same time, cutting interest rates will reduce mortgage interest, but it may be that house prices have risen. After all, the cost of buying a house is lower …
To sum up, interest rate cuts will have a far-reaching and lasting impact on all aspects of society. Every coin has its two sides. At present, the interest rate level is in a relatively low period in history, which is also the basis of price stability!
So far, the central bank has no intention or expectation to cut interest rates, and the implementation of the benchmark interest rate we saw was released around 20 15. So in the short term, we can't have too many associations because of the Fed's crazy interest rate cut, because China and the United States are in two different economic development cycles. So since the question is what kind of influence Jiangxi will have on ordinary people in all aspects, we can basically refer to the current American people's reaction to the Fed's zero interest rate to sum up these influences.
The financial yield of the investment market will decline.
We can see that with the implementation of the Fed's zero interest rate policy, the current quantitative easing policy is actually reflected behind it. The purpose is very simple, that is, to stimulate people to spend this part of their savings and promote the circular development of the economy. There are still quite a few Americans who prefer to keep their money instead of corresponding consumption and development, and they will invest it in the current stable investment market. The interest rate of US 10-year treasury bonds is close to 0.7%, and the interest rate of 30-year treasury bonds has fallen to around 1%, which is a very big drop.
So that is to say, after the interest rate cut, the average yield of the financial investment market will gradually decline. This is indeed the biggest impact on many ordinary investors at present, including your bank's time deposit certificate and other bank financing interest rates will drop to a certain extent.
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The impact of the central bank's interest rate cut on the people is also relatively large. Generally speaking, the interest rate cut is beneficial to the lender to reduce the repayment pressure, but it is not conducive to the depositor to improve the deposit income. Let's analyze it.
On the one hand, the central bank's interest rate cut is conducive to reducing the repayment interest of lenders, on the other hand, it also encourages everyone to actively borrow money.
The central bank's interest rate cut means that the benchmark loan interest rate will also be lowered. Under such circumstances, it is definitely beneficial to the lender. The higher the loan amount, the less interest that may be repaid after the interest rate cut, which helps the lender to reduce the repayment pressure.
On the other hand, the reduction of loan interest is also conducive to stimulating many people who need loans to increase their loan expenses or buy a house or a car.
If the central bank cuts interest rates, the deposit interest rate will definitely decrease. In this way, many depositors will find that the interest rate of time deposits is lower than before, and then they will feel that it is a bit uneconomical to deposit in the bank. At this time, many ordinary people feel that it is not cost-effective, and they will take out money to borrow money to buy a house or stock.
The central bank cuts interest rates, generally the benchmark deposit rate. Because there are many commercial banks now, the interest rates implemented by each bank are different. If you think that after the central bank cut interest rates, the bank interest rate of your own deposits has dropped, which is not cost-effective, you can also find more banks and choose banks with high deposit interest rates to deposit.
At present, the deposit interest rate of small and medium banks is slightly higher than that of large banks, and the interest rate of private banks is generally slightly higher than that of small and medium banks. Therefore, when making deposits, you can compare more and choose the bank you are satisfied with.
To sum up, for ordinary people, the central bank's interest rate cut will help lenders reduce interest expenses and stimulate loan consumption, but for depositors, the deposit yield may decline, which is unfavorable.
Thanks for reading!