The Central Bank Lowered Its Rediscount Rate By 0.25 Percentage Points.

Reporters learned exclusively from multiple sources. The central bank recently issued a document saying it decided to reduce the reloan and discount rate from July 1st. Among them, the interest rate of supporting agriculture to refinance and supporting small and refinancing loans was reduced by 0.25 percentage points. After adjustment, the interest rates of 3 month, 6 month and 1 year support agriculture refinancing and small loans were 1.95%, 2.15% and 2.25% respectively. The discount rate is reduced by 0.25 percentage points to 2%. In addition, the central bank also lowered the refinancing interest rate of financial stability by 0.5 percentage points. After adjustment, the financial stability reloan interest rate was 1.75%, and the interest rate for financial stability refinancing (postponed period) was 3.77%.

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What does the central bank lower the rediscount rate by 0.25 percentage points? According to the strategic planning department of a joint-stock bank, refinancing is actually a mortgage issued by the central bank to the bank, and the bank needs to pay interest to the central bank. Since refinancing requires the banks to initiate applications, the interest rate expansion of banks can be enhanced by lowering interest rates, improving the efficiency of reusing loans, and providing financial support for lower cost. According to the previous policy, before the end of June, the central bank issued new loans to local legal person banks not higher than the lending market quotation rate (LPR) plus 50 basis points of small and micro enterprises loans, allowing equal application for re lending funds, and now the policy window period has arrived, and the amount of reloan discount is still very abundant. The interest rate reduction in July 1st will encourage banks to continue to reduce interest rates. Continue to grant small loans to support agriculture.