An Analysis of the Interest Rate Transmission Mechanism and LPR Policy Effects Under the Threshold of Interest Rate Marketization Re-forms
In order to change the long-standing two-track interest rate system,China launched the Loan Market Quoted Rate(LPR)reform in August 2019,with the intention of opening up the transmission channels from the cen-tral bank's monetary policy to the real economy.This paper analyzes the changes in the interest rate transmission mecha-nism before and after the LPR reform,and empirically investigates the monetary policy transmission path and policy ef-fects in the context of the LPR reform by using the structural vector autoregression model with financial data from June 2016 to December 2023.The study shows that after implementing the LPR reform,the central bank's policy rate has a significant impact on the market benchmark interest rate,and the market interest rate shows sensitivity to shocks to the market benchmark interest rate,indicating that the reform effectively optimizes the interest rate transmission mecha-nism and ensures that monetary policy intentions can be more smoothly transmitted to the real economy;compared with the quantity-based regulation,price-based regulation tools have a more significant impact on interest rate transmission and play a more critical role in liquidity signaling,enhancing the effectiveness of monetary policy transmission;after the LPR reform,regardless of whether the medium-term lending facility rate or the 7-day reverse repo rate is selected as the pricing benchmark,the LPR is able to feed back the interest rate signals released by both in a timely and accurate manner,which proves the stability of the interest rate transmission system after the LPR reform.The study enriches the relevant literature on the implementation effect of the LPR reform and provides some insights to further enhance the effi-ciency of interest rate transmission.
万方数据
维普
