The central bank’s double cuts ➢Why will the central bank’s double cuts affect the stock market

This article’s catalog list: 1. Heavy! How will the double LPR cuts in April affect housing loans? 2. How much is the interest rate after the central bank’s interest rate cut in September 2022 3. How does the central bank’s 5 double cuts in this year affect our lives? Heavy! How does the double cut of LPR in April affect mortgages? 1. Just now, the “interest rate cut” in the loan market came! According to the latest news released on the central bank’s official website at 9:30, the People’s Bank of China authorized the National Interbank Funding Center to announce that on April 20, the loan market quoted interest rate (LPR) was: 85% for 1-year LPR, and 85% for 5-year-plus LPR 65%. 2. The main impact of the decline in LPR on mortgages is that the interest rate may also be reduced accordingly, which can reduce the interest rate. 3. After completing a repayment cycle, the mortgage interest rate will be priced with reference to the latest LPR. If the LPR decreases at this time, the mortgage interest rate will also decrease. What is the interest rate after the central bank cuts interest rates in September 2022? 1. On September 15, 2022, the six major banks and commercial banks adjusted their personal deposit interest rates. The mortgage interest rate is still 3%. This interest rate is the latest interest rate released by the central bank in August. 2. The three-year time deposit (lump deposit and withdrawal) interest rate of the six major banks has been adjusted to 60%, which is 15bp lower than before. 3. The deposit rate will be lowered twice in 2022! In April 22, the interest rate on deposits with a maturity of more than one year was lowered by 10BP. On September 15, 22, a number of large state-owned banks adjusted the interest rates of personal deposits again, and the interest rates of many varieties, including demand deposits and time deposits, were fine-tuned to varying degrees. 4. Previously, the loan interest rate for the first set of personal housing provident fund for more than 5 years was 25%, and the rate of reduction was 0.15%. Yan Yuejin, Research Director of the Think Tank Center of E-House Research Institute, commented on the reduction of the provident fund interest rate by the central bank on September 30, 2022: On September 30, the central bank decided to lower the interest rate of the first set of personal housing provident fund loans. 5. From June 2022 to September 2022, the interest rate on large-denomination certificates of deposit has dropped by 15 basis points. The central bank’s 5 double cuts during the year, what impact will it have on our lives? In addition, the interest rate cuts still have some impact on the common people. The interest rate cuts will increase the currency circulation, and the currency on the market will increase, so it will definitely cause inflation, price rises, etc. The result is still the same It will bring inconvenience to the lives of ordinary people. The impact of the central bank's interest rate cuts on ordinary people is also relatively large. Generally speaking, lowering interest rates will help lenders reduce their repayment pressure, but it will not help depositors increase their deposit income. Let's analyze it below. First of all, the interest rate of the existing mortgage loan will not change according to the contract. The central bank’s interest rate cut will not affect its repayment plan. On the contrary, the price of MBS composed of mortgage loans will rise. Life consumption is more active and interest rate cuts mean that interest rates may be reduced, allowing bank deposits to flow to consumption and investment. The interest rate cut will promote consumption, and it is expected that the consumer confidence index will rise in the future, which is also conducive to the overall upward development of the economy. A rate cut will bring more money into the stock market and therefore help stock prices rise. Cutting interest rates will promote corporate loans to expand reproduction, encourage consumers to borrow money to buy big-ticket commodities, and gradually heat up the economy. Impact: Mortgage interest rates will continue to decline After the interest rate cut, the loan interest rate will continue to decline. After just over a month, "Yang Ma" once again announced a double drop. The People's Bank of China has decided to simultaneously lower the RMB loan and deposit benchmark interest rates of financial institutions and the RMB deposit reserve ratio of financial institutions starting from October 24, 2015.