"Dual Interest Rate" Policy Precisionally Supports Consumption

Securities Times reporter, Sun Luolu

Following the notable success of the policy on consumer goods, a new "national support" policy for consumer lending has been rolled out, which is expected to play a role in promoting consumption and improving supply-demand balance in the industry. This move will release more new consumption vitality.

Since this year, policies such as consumer goods replacement subsidies have effectively stimulated consumer enthusiasm through "buy and reduce" subsidies. Many consumers have enjoyed tangible benefits. The interest rate policy for personal consumer loans and consumer services loan operating capital (referred to as the "dual interest rate" policy) continues the financial support advantage, reducing the cost of using loans for individuals and businesses.

Financial interest rates can directly benefit loan users while also accurately identifying effective demand. Public funds are precious and limited, whether it's consumer goods replacement or "dual interest rate" policy. Every financial expenditure must be made with precision, avoiding "wasting money".

Unlike consumer goods replacement subsidies, the "dual interest rate" policy is a new collaboration between finance and government. Over the past few years, China has repeatedly implemented policies such as "financial interest rates + structural monetary policy tools" to encourage financial resources to support specific industries, accumulating rich operational experience and achieving positive results. This time, the central government will extend the scope of interest rate subsidies from enterprises to individuals, a new innovative exploration.

The re-united finance and government, with marketization and legal regulation as a constant principle, is reflected in the government's "invisible hand" not exceeding or lacking. On the one hand, loan recipients are still determined by financial institutions; on the other hand, the cost of interest rate subsidies will be borne by financial funds rather than financial institutions, allowing for both promotion of consumption and sustainable operation of financial institutions.

A good policy must not only have in-depth research and clever design before implementation but also timely supervision and rectification after implementation. Especially when it comes to the use of public funds, we must ensure that the policy benefits are precisely targeted and prevent "running away" behaviors.