On 10 June 1999, The People’s bank lowered interest rate for the 7th time. From analysis of the relationship between the interest rate and price, the bank profit, the enterprise profit, the exchange rate,the adjustment fits in with the current economic situation. But it seems that all the seventh cut since 1996are not satisfied to the economic growth, why? The reason is that there are barriers seriously existed inour economic system and structure. Therefore, We suggest that beside the interest late adjustment weshould give priority to credit increasing in the operation of our current monetary policy, and accelerate thereform speed on the interest rate system, from managed one to a market - based one. And we should alsoget other macroeconomic policies matched with our monetary policy.
