Dollar interest rates affect interconnected financial industry

By Eugene Griffin,2015-09-21 01:58
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Dollar interest rates affect interconnected financial industry

Dollar interest rates affect interconnected financial


    The federal reserve's 16, announced that the federal funds rate rise by 25 basis points to 0.25% to 0.5%.The federal open market committee announced last time raise the federal funds target rate or on June 29, 2006, at the time after the target for the federal funds rate is 5.25%.Beginning in 2007, the target for the federal funds rate continued to decline.Until December 16, 2008, dropped to zero.Fall is fall, after the United States monetary policy into a period of quantitative easing is very loose, through irregular means to inject more liquidity to the market.Rates this means that the United States into the cycle, it also means the end of quantitative easing monetary policy after the policy cycle back to normal.From past experience, five rounds of cycle every cycle accumulation rate increase of more than 300 bp, combined with meeting the latest lattice figure and the futures market forecast, the next rate probability in 16 years starting in April, 16 years at least two interest rate increases, the end of 16 interest rates should be in 1% or more, according to predict the end of the America to raise interest rates or in 2019, in the end the federal funds rate will reach 3% - 3.5%. Due to the current global economies have different movements, so have appeared in the differentiation of monetary policy.Dollar funding to reduce interest rates mean that the United States market, the yield rate

    and capital will rise, some cross-border flows of capital will return the United States.For some emerging economies, it may mean outflows, which could lead to a decline in its currency.If the response to the means such as foreign exchange reserves, is likely to mean that risk. However, the federal reserve to raise interest rates also means that the U.S. economic recovery is strong, some economies exports is expected to be improved.For the fed to raise interest rates can lead to the concerns of the RMB exchange rate fluctuations, the people's bank of China in the near future, from the long-term fundamentals, the RMB exchange rate with conditions in a reasonable and balanced level basically stable.On December 17, according to the latest news, news, after the federal reserve to raise interest rates, the Hong Kong monetary authority said on Thursday that today will be the benchmark interest rate from 0.5% to 0.75%.The raised benchmark interest rates for the first time in nine years.

    The federal reserve to raise interest rates for the financial industry, China's economy and the Internet will also be necessary to impact.China since November 22, 2014, six consecutive cut interest rates fall, on November 22, 2014, the one-year benchmark lending rate by 0.4%;The benchmark one-year deposit interest rate by 0.25%;On March 1, 2015, cut in financial institutions RMB loan and deposit rates and expand the range of floating deposit rates 1.2 times to 1.3 times;On May 11, 2015, a

    year by 0.25%, expand the range of floating interest rates on deposits again at the same time, the ceiling by 1.3 times of the benchmark deposit rate of 1.5 times;On June 28, 2015, targeted for financial institutions to implement directional down, cut in financial institutions RMB loan and deposit rates to further reduce the financing cost;On August 26, 2015, the people's bank of China lowered benchmark deposit and lending interest rates by 25 basis points and at the same time lower the deposit reserve rate;October 24, 2015, cut in financial institutions RMB loan and deposit rates by 0.25%, and down 0.5%.Accumulated business lending rate by 1.25%, from 6.15% in early 2015, fell to 4.9% now, below "5" section, a record low levels.And this a series of rate cuts, in recent years is unprecedented in the interest rate policy. , according to data and market funds believe the financial industry, Chinese Internet association, 2016, the central bank can no longer drop must cut, otherwise it will further aggravate the outflows.Us interest rates increased U.S. assets attractive and increased capital outflows, therefore we should improve the domestic return on assets to deal with, need a multi-pronged: one is the steady domestic economy, industrial investment appears at the bottom of the rebound in November, heralding the economy or short-term stabilized, help to enhance confidence in the short term China's return on assets.2 it is short-term needs to hold interest rates, should not be cut, should be mainly by

    raising interest rates to hedge funds outflow.3 it is to speed up the reform, improve the efficiency of China's economy, last week whether the speeding up of the registration system, the implementation of the residence permit system, or "zombie" companies to clean up the determination for the central enterprises, are marked in accelerate the reform.The federal reserve to raise interest rates to a certain impact on the real economy, domestic market, foreign capital fled, deflation downward pressure on China's economy and China's manufacturing, China's real economy into the dilemma.In this case, the federal reserve to raise interest rates, may make the situation worse, and there is almost no innovation and product upgrade ability of small micro enterprises, especially foreign companies could have borne the brunt of the closed position, in fact, this year has to respond.And in small micro enterprises as the main service object of P2P network, loan its risk control difficulty bigger, access to the difficulty of high-quality assets and more, of course, it is a kind of negative influence for P2P, need the network operators to his temper resistance, loan risk control ability, improve the platform to strengthen transparency, only in this way the Internet financial industry to grow steadily.

    If in 2016, the central bank to raise interest rates, will have big fluctuation of the financial industry, the Internet.The central bank to raise interest rates, a lot of money back, less money on the market,

    shrinking liquidity.Recently, the global financial market in the near future also appear larger fluctuation, need to use monetary policy tools, more flexible for economic steady and healthy development of the economic structure adjustment and good monetary and financial

    environment.Central bank raising interest rates, bank deposit interest rate increase inevitably leads to more deposits into the bank, there will be some of the money in the stock market, the housing market to flee, even though the Internet financial income is still higher than the bank financial platform very much, but most investors believe Banks safer, so most investors will choose to save money as a bank, interest rates will lead to more money flowed from the Internet platform for financial management.However, for the real P2P platform, reliable credit will not be lost a lot of customer resources.

    China's Internet banking association often got a call from the investors, consulting a platform is safe investment, a platform is association member units.All my association membership units is trained and gave nameboards, examination, the level of business association member unit, the overall quality is after association of critical appraisal, can provide investors with reliable Internet financial platform.

    The financial industry, Chinese Internet association in addition to enjoy association membership rights and association with the scope of business, all sorts of PC and mobile phone end of the promotion tools

    use priority, since May 2015, investors have a project on a monthly basis and selection of investment and financing and docking activities, a batch of high quality project and qualified investors realize the free field joint, a month to a member of the free transfer the latest information on the Internet financial policy, the latest Internet financial knowledge lecture, help the Internet financial enterprises to realize the development of large span and branding.

    Whatever economic situation change, any industry stick to their own moral bottom line of the industry.From the development model, products, services and so on many aspects, optimization of continuous innovation, and only in this way can we guarantee not eliminated by the tide.The financial industry, Chinese Internet association pay close attention to the international and domestic economic situation, the monitoring development association member units, help more

    enterprise take off.Internet financial enterprise also only closely around the financial industry, Chinese Internet association as the core of the huge platform, to achieve more investment and financing, promoting the development of the industry upgrading.

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