The impact of interest rate cuts on residents' investment choices.

The recent announcement by the Central Bank of a certain magnitude of downward adjustment in the Loan Prime Rate (LPR) has led to major commercial banks lowering deposit rates. After this adjustment, the current one-year deposit rate is generally below 1%, whereas two years ago it was typically around 2%. The reason for this situation is largely related to weak consumer willingness to spend. Now that savings interest rates have been lowered, and by a significant amount, will this affect residents' investment willingness? It can be said that this impact definitely exists. In a sense, the 1% interest rate has a symbolic significance. When savings rates are lower than this level, although it may not fundamentally change residents' willingness to save, it will greatly reduce their savings enthusiasm and will in fact lead to a trend of some groups of people "moving" their savings. At this time, alternative investment products, especially stocks, if they can show a stable uptrend, will certainly accelerate the trend of moving savings and directly flowing into the stock market. Looking back later, it is not difficult to see that this interest rate cut has indeed affected residents' investment choices. Of course, this impact is a gradual process and will not happen all at once. Because a change in people's cognition takes time, and there need to be enough financial products with returns significantly higher than savings. Additionally, stock market stability is crucial. While the dividend yield in stock investment is important, if stock prices are in a downward trend, the dividend income may not offset the market value losses. Therefore, efforts to stabilize the stock market and activate the capital market are ways to encourage residents to change their excessive reliance on savings.