| Issue |
SHS Web Conf.
Volume 207, 2024
2024 2nd International Conference on Digital Economy and Business Administration (ICDEBA 2024)
|
|
|---|---|---|
| Article Number | 04024 | |
| Number of page(s) | 6 | |
| Section | Global Trends, Public Policy, and Social Development | |
| DOI | https://doi.org/10.1051/shsconf/202420704024 | |
| Published online | 10 December 2024 | |
The Impact and Prospect of China’s Low Interest Rates on the Economy
Queen Ethelburga’s Collegiate, YO26 9SS, York, United Kingdom
* Corresponding author: jfu@thorpeunderwood.com
This article explores the impact of China’s long-term low-interest-rate policy on its economy and its future development direction. While the low-interest-rate policy has stimulated investment and consumption, it has also led to risks such as rising asset prices, real estate market bubbles, and increasing debt levels. The squeeze on bank profit margins may affect the stability of the financial system. The article reviews the development of China’s interest rate policy since 1949, analyzes the impact of low interest rates on consumption and investment, and predicts the trend of future interest rate changes. The study shows that a decrease in deposit interest rates may reduce the willingness to save, and increase consumption and investment, but may also increase market volatility and investment risks. Changes in the global economic environment and the need for domestic economic structural adjustment make it particularly important to study the impact of low interest rates on China’s future economic development.
© The Authors, published by EDP Sciences, 2024
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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