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The policy interest rate and the public interest rate are the interest rate related to the central bank.
However, it is a policy interest rate that is centered on the current financial market, and the public orientation is a subsidy position.
In this article, we organize two differences, the reason why it is easy to be conf, and the impact on stocks, bonds and exchanges for beginners.
First Con まず
The difference between the policy interest rate and the public orientation is easy to understand by looking at the target and role.
| English | 意味 | Current |
|---|---|---|
| PolicyInterest | Criteria interest used by the Central Bank to adjust economic and price | High |
| Contact Us | The term used as a reference interest rate when the central bank lends funds to banks, etc. | Subsidy |
What is particularly important in current investment news is the direction of policy interest.
It is important to understand the financial policy of the past, but it is not the first indicator in the current market.
First,
The policy interest rate is the entire market and the public interest is loaned to banks
If you understand, the news will be quite readable.
Policy Interest
The policy interest rate is a reference interest rate used by the central bank to adjust the economic and price.
In Japan, the Bank of Japan and the United States are responsible for financial policies.
The purpose of moving the policy interest rate is to balance the economy and price.
| Policy | Main aim | Easy to get up |
|---|---|---|
| 利上げ | Inflation suppression, refrigerant overheating | Increased borrowing costs and refusing to stocks |
| 利下げ | Economic support, consumption and investment | Less borrowing costs and easier to catch up with stocks |
Policy interest rates are widely influenced by bank lending interest rates, corporate financing, bond yield, currency exchange, and stock price.
Therefore, policy announcements and press conferences of the Central Bank will be an important event for investors.
公定歩合とは
Public purification is a term used as a reference interest rate when central banks lend funds to private banks, etc.
The Bank of Japan has announced that it is a standard discount rate and standard lending interest rate.
In the past, the public pursuant to financial policy.
Because the bank borrowed funds from the central bank, the cost of it was easy to spread to companies and individuals.
Flow can be arranged as follows:
| Changes in Public Meeting | Impact on Banks | Impact on Corporate and Household |
|---|---|---|
| 引き上げ | Increased procurement costs | Easy to understand borrow |
| Close | Lower procurement costs | Easy to borrow |
In other words, it was an important tool for economic adjustment.
Why confusing
Even though policy interest rates and public walks are conf, since long ago, public walks were representative of financial policies.
Previously, even in the news, it was often used to express "publicization progression" and "publicization progression reduction".
For this reason, some people have the impression that the interest rate of financial policy is determined.
However, it is mainly the way to adjust the financial environment through the market interest rate.
In investment news, the following words are better.
| Frequently見る Questions | See Points |
|---|---|
| PolicyInterest | Is the central bank moving to interest and interest? |
| Short-term interest rate | Financial Market Funding Environment |
| Long-term interest rate | Impact on bond market, m gage, and stock evaluation |
| Central Bank Statement | Next Policy Change Tips |
The public interest is “a word that was historically important”, and the policy interest rate is “an important word in the current market”.
Why is the policy interest center now?
The method of funding of financial institutions and the structure of financial markets have changed.
In the past, borrowings from the central bank had a great meaning in funding financial institutions.
On the other hand, it is important to work on short-term interest rates and market interest rates through the mechanism of financial transactions and financial adjustments in the market.
The Bank of Japan also explains that the former public s、uling is now positioned as a "standard lending interest rate" as an application interest rate of the supplemental lending system.
In other words, it is not completely meaningless.
However, the main indicators of the market are moving to policy interest rates and beyond.
Impact on the investment market
It is useful for understanding the investment market because policy interest rate and public orientation are also related to interest rate in a wide sense.
However, we believe that changes in policy interest rates and the remarks of the central bank are easily influenced by stocks, bonds and exchanges.
StockMarket
In general, the interest rate is added to the stock and the interest rate is considered to be negative to the stock.
| Interest rate | Impact on Shares |
|---|---|
| 利下げ | Less borrowing costs and easy to understand corporate activities |
| 利上げ | Increased borrowing costs, making it easy to reverse the profit and consumption |
However, if the interest is lowered, it is not necessarily the stock price.
In the event of a severe economic deterioration, the stock market may see scenic anxiety.
Bond Market
The bond price and interest rate basically move in the opposite direction.
`r ↑ → Pbond ↓`
When the interest rate rises, the yield of newly issued bonds increases.
As a result, the price of existing bonds issued in previous low yields becomes easier.
Currency Exchange
The currency of the country with high interest rate tends to be relatively easy to buy.
For example, if the U.S. interest rate is higher than Japan, the dollar is easier to buy, and it may move in a lower direction.
However, the exchange rate depends on economic, political, geopolitics, trade balance, and investor requirements.
It is important not to judge the exchange only by the interest rate difference.
Points to be considered for beginners
When a beginner sees interest rate news, it is practical to press the following three instead of remembering all the fine terms.
| See Points | Reason |
|---|---|
| How to move | The market is now weaving ahead |
| Central Bank | Be a hint of interest and interest reduction |
| Inflation rate | Becoming a major decision material for interest policy |
Especially important is the direction of policy interest.
The way to see shares, bonds, and exchanges will change depending on whether the interest is going to continue or the interest is going to be lowered.
In addition, in the statements and general meeting of the Central Bank, the reference to the price, 、, economics and financial markets is noted.
It is important to read not only the numbers but also what the central bank is cautious.
Common misunderstandings
Is it any more meaningless
The public orientation is not completely meaningless.
Currently, it is positioned in the loan system of the central bank as "standard loan interest rate".
However, if you look at the most important interest rate in investment news, the policy interest rate and market interest rate will be preferred.
Is it always high stock if it is profit
Interest is generally an element that is easy to catch up with the stock.
However, in a situation where the warning to the recession is strong, the interest may be accepted as a "worse sign".
In investment, you need to see not only the direction of interest, but why the policy is made.
The policy interest rate is an important indicator of the central bank that affects the market-wide interest rate environment.
The public pursuant to the terms used as a reference interest rate when the central bank lends funds to banks, etc., was the center of the financial policy.
The policy interest rate is more important in the current financial market.
First,
Is the flow that the policy interest rate rises or falls?
By consciousness, the link between shares, bonds, and exchange news is easier to see.
It is sufficient to push the public pursuant line to understand the history and mechanism of financial policy.