文稿国际金融global finance group no.interest rate and its influence on economy

1、Interest rate and its influence on economyTeam WorkGroup oneTeam member:Lu YunfeiChen DandanWang CanghongMin HuiLi PeiLiu ShuyanConcept of interest12The impact of interest on international trade3ContentsPage 3Case study: Interest Rate Cut and the Chinese Economy45The impact of interest rate on the s

2、tock marketThe impact of interest on the domestic economyConcept: InterestPage 4Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited funds.There

3、are markets for investments (which include the money market, bond market, as well as retail financial institutions like banks) set interest rates. Each specific debt takes into account the following factors in determining its interest rate:Page 5Opportunity costInflationDefaultDefault interestDeferr

4、ed consumptionLength of timeGovernment intervention2、The impact of interest on the domestic economypriceinvestmentconsumptionPage 6Influence on residents consumption and savingsInfluence on corporations investment Stabilize pricescurb inflation2、The impact of interest on the domestic economyInfluenc

5、e on residents consumption and savingsPage 71, the savings = e-consumption2, the higher the interest rate, the higher the propensity to save, the propensity to consume is suppressedInfluence on residents consumption and savingsPage 8Influence on residents consumption and savingsPage 92、The impact of

6、 interest on the domestic economyInfluence on corporations investment Page 101, investment is on behalf of social needs2, to raise interest rates means to increase the cost of investment3, raise the loan interest rate reduce the overheating investment of industry curb excessive investmentInfluence o

7、n corporations investment Page 112、The impact of interest on the domestic economyThe impact of pricePage 12maintain a reasonable deposit interest rate adjust and stabilize inflation maintain the basic stability of the general price levelPage 13The impact of price3、The impact of interest rate on inte

8、rnational trade Impact to the foreign fundsPage 14Interest rate increase import short-term assets and Reduce the deficitInterest rate decrease Limit inflow of foreign capital and eliminate the favorable balanceImpact to the foreign fundsPage 153、The impact of interest rate on international trade Imp

9、act to the exchange rateInterest rate increase credit crunch, prohibitive import and promote exportInterest rate decrease stimulate investment and consumption, benefit to import Page 16The impact of interest rate on international trade Impact to the exchange rateInterest rate increase credit crunch,

10、 prohibitive import and promote exportInterest rate decrease stimulate investment and consumption, benefit to import Page 174、The impact of interest rate on the stock market1、I ，lending cost ， corporation profits ， stock price ；2、 I ，Stock discount rate ， stock price 3、I ， investment to other area，

11、stock price单击添加您的信息Page 18Long-term effectPage 205、Case study2014-12-02 Interest Rate Cut and the Chinese EconomyPage 22The latest interest rate cut by the Peoples Bank of China, and its influence on the Chinese economy, continues to be a point of discussion among experts and citizens alike.Case stu

12、dyPage 23What will happen?Page 24helping smaller businesses gain access to creditPage 25Growth of fixed asset investment is 15.8%, 3.8% decrease to last year.Page 26Real estate investment continued to declinePage 27Rate Cut lead to the prosperity of the real estate marketPage 28Rate Cut lead to the

13、prosperity of the real estate marketPage 29Rate Cut lead to the prosperity of the real estate marketPage 30stock market boomPage 31stock market boomPage 32stock market boomPage 33stock market boomPage 34Price is stablePage 35Export trade needs pressurePage 362014-2015 Interest Rate Cut and the Chine

14、se EconomyWhile Chinas central bank insists the cut is aimed at helping smaller businesses gain access to credit, many economists believe it is the start of monetary easing. Some are speculating that the bank will further cut interest rates and, if necessary, the reserve requirement ratio next year to maintain economic growth.The cut is obviously good news for