1. The impact of raising interest rates is greater than the deposit reserve ratio. The reason is: raising interest rates is aimed at all industries to increase their credit costs. Raising deposit reserves is only targeted at banks and other financial institutions, which reduces the loanable funds of enterprises in banks, but the credit costs

Unchanged 2. Raising interest rates affects all sectors, especially capital-intensive industries such as real estate and steel. It is negative for banks as well (because deposits increase, loans reduce, banks’ income decreases and expenditures increase). Raising deposit reserves is only negative for banks because

When the profit rate remains unchanged, the amount of loanable funds decreases, and the income decreases accordingly. This has a certain impact on other industries, because it indicates that the country may begin to tighten liquidity. 3. Both of them are aimed at rising prices, but inflation only increases.

Interest rates are more powerful in curbing inflation