Macroeconomic control of interest rate in China

The macroeconomic control of interest rate is studied using the elastic theory and correlation analysis and the concrete influence of interest rate on the consumption, savings and investment in China are investigated. It is pointed out that although the interest rate mechanisms in China has gone through several adjustments and reforms, the results are not yet fully up to expectations. The interest rate does not adjust the national economic structure, and direct the trend of funds, nor regulate the general social supply and demand and balance the price and currency in circulation, to achieve a rational distribution of social resources. The interest rate policy of Central Bank does not have much actual influence on the economic departments, and this influence was continuously weakened in recent years. Countermeasures are suggested for improving the macro control of interest rate.