SHIBOR in the System of Domestic Benchmark Interest Rates: Its Roles and Improvement Channels

From the perspective of the five basic features of the interest rate system,i. e.,market representa-tiveness,pricing importance,rational fluctuations,policy controllability and economic correlations,the article conducts a relatively thorough evaluation of the current situations of the domestic benchmark interest rate,and the roles SHIBOR play in particular. The result shows that none of SHIBOR,interbank offered rates and repurchase rates of bonds can independently act as benchmark interest rates. The actual benchmark interest rates are a combination of both controlled interest rates and market interest rates. SHIBOR and the repurchase rates of bonds are in the core of the short-end interest rates; interbank offered rates and the controlled loan-deposit interest rates constitute the long-end interest rates. As for interest rates of different durations,the one-week SHIBOR and the two-week repurchase rate of bonds are most likely the target interest rates under PBC’s regulations; the former,though having strong policy-controllability and economic correlation,moves more irrationally whereas the latter,though behaves more rationally,is weak in controllability and economic correlation.