China's Implementation of Interest Rate Corridor Regulation and its Impact on Interest Rate Fluctuations

At present, China?s monetary policy regulation has changed from a quantity-based to a price-based approach, and the interest rate corridor, as an important monetary policy regulation mechanism, can effectively promote the transformation of monetary policy from a quantity-based to a price-based one. This article empirically analyzes the changes of interest rate fluctuations in the money market before and after the establishment of the interest rate corridor. The results show that the construction of the interest rate corridor reduces the volatility of inter-bank lending rates to a certain extent. On this basis, it puts forward policy recommendations to improve my country's interest rate corridor control mechanism.