Central Bank Announces Interest Rate And Deposit Rate "Double Drop"

In the evening before the "frost descend" in 2015, the central bank announced that interest rates and deposit rates were "double down".

This is a long-awaited signal in the financial market.

But what is different from the past is that this announcement is more important: cancel the ceiling of deposit interest rate.

Theoretically, after the "double down" of the central bank, it is possible to produce a bank product like the balance treasure, which pays more interest to users than traditional banks.

After all, about 90% of the money that we kept in the balance treasure was eventually put into the bank by the fund company.

In the United States, such products such as balance treasure can not survive without saving money to the IMF and banks.

Foreign financial institutions may hardly imagine that Chinese counterparts will have such a fierce competition in this field.

If the fierce market pformation really takes place, the richer the group is, the stronger the ability to evade risks. Therefore, ordinary middle-income people can not hope for the country or a specific one.

Responsible for personal investment behavior.

In the tide of marketization reform with mud and sand, what we really need to do is to polish our eyes, distinguish and identify trustworthy institutions, and take responsibility for our investment behavior.

Ten years ago, I saw the contents of China's financial system reform constantly in teaching materials and papers. The landmark stage of reform is the liberalization of deposit interest rates.

At that time, for a long time, it was hard to achieve. I didn't think that after only ten years, the rules were basically realized.

For this "double down" and liberalization of deposit interest rates, we can find many details that are worth the attention of ordinary people.

For example, if you are a high-income investor, you can earn money through hot water in the future financial market, or simply switch to US dollars. If you just want to save a safe old age, in this already clear trend of interest rate cuts, we should be concerned about the large deposit that is not high but will be lower in the future.

These details are valuable, but they can be matched by the interest rate liberalization of the symbolic nodes, which should have been enjoying high economic growth for a long time.

Can middle income groups really take responsibility for themselves?

From a small point of view, taking responsibility is accepting the reality that investment can be rewarded or it may lose money.

In the past year, we have seen a lot of investors whose interests are damaged. Some of them have encountered almost fraudulent financial small businesses, some from illegal institutions such as banks.

Now their general idea is that the government and regulators should take the responsibility to make up for their losses.

We always criticised the disadvantages of the government, but

The establishment is not that the sky will drop an invisible finger to guide you.

The perfect mechanism needs the joint efforts of various organizations and individuals.

From this perspective, it is obviously not realistic to want the government to shoulder too much responsibility for its investment behavior.

Scrutinize some investors who have no money at all, do they really believe that any one institution can give a risk free super high yield, or do they really believe that they can buy the same private housing product with the same risk and higher income from the employees of formal financial institutions?

It is of little significance to study the tricky stuff. There are still many people and institutions who need baptism in the market.

But now that we have come to a freer financial market, we can no longer expect the government to go all the way to protect it.