The purpose of all of a sudden the central bank to cut interest rates

Cut interest rates, the timing of a sudden, a huge margin in the history of China's economy is very rare. The main purpose is to reduce the burden on enterprises, so that the real economy can survive the winter. Entities that exist in the current economic problems are mainly embodied in a serious shortage of cash flow, a lot of business is difficult even to pay interest on the bank. Once the bank to recover, it is easy to close down the vicious chain of events and to speed up bad debts of the financial system. The rate cut takes into account the interests of the banks, in particular, to reduce the interest demand deposits, to a certain extent, ensured the spread of the bank. Substantially cut the main beneficiary of the real estate industry is clearly central to listen to the real estate industry. Although there are many problems in the industry, but the two lesser evil, the stability of the real estate market has become the current government's options. However, monetary policy can only reduce the current expenditure at the expense of the interests of the vast number of depositors, a hard landing for the economy to ease, but could not make out of business out of this predicament. Sharply cut interest rates for capital markets is a major positive, the economy also means that the seriousness of the problem. For the high prices in the future, can not be optimistic about the need to focus on early stage to avoid a hot stock in order to prevent lock-in high up.