What is the meaning behind the reduction of domestic deposit interest rates again?
Two days ago, we were still saying that some city commercial banks were raising deposit interest rates, but this time, the four major domestic banks have begun to cut interest rates again. As we said before, the four major banks are the real weather vane, and their own deposit interest rates are already very low, so what is the meaning behind their preparation to cut interest rates again?
In fact, from the perspective of the central bank, the reduction of the interest rate on deposits is used to regulate the overall relationship between monetary supply and demand, and indirectly achieve the goal of macroeconomic regulation and control. As we all know, our overall willingness to consume is weak, and our confidence is insufficient, so by adjusting monetary policy, we also hope to promote consumption and investment. It is hoped that policies will mobilize individuals and businesses to borrow and encourage them to consume, invest and spend capital, so that the economy can grow.
It is possible to lower the deposit rate to guide investors to invest in other assets, so as to promote the development of the capital market, and then promote the improvement and upgrading of the overall economy. And our current inflation level is very low, which is unreasonable, which means that the overall purchasing power of individuals and even enterprises is declining, which is not so friendly to the development of the entire social economy.
The general inflation level is more reasonable to maintain around 2%, but if you look at our inflation level in recent periods, you can see how insufficient our spending power is now. Another is that in the context of the economic downturn, the investment income of banks also has an impact, so lowering the deposit interest rate is actually optimizing the liability structure of banks. Start planning my 2024 As we all know, deposits are the bank's liability, and if the cost of the liability side falls, it is actually beneficial to the bank, which is beneficial to the bank's financial stability and sustainable development. The situation we investors are facing now is that the deposit interest rate is constantly falling, so have you found alternative assets?This is something we need to consider.