What does interest rate pricing benchmark conversion LPR mean?
The conversion of interest rate pricing benchmark mainly refers to the conversion of mortgage interest rate benchmark from central bank benchmark interest rate to LPR interest rate. In China, the interest rate of formal financial institutions has a benchmark, and the interest rate of related products of financial institutions cannot deviate too far from this benchmark interest rate. The interest rate of mortgage has always been anchored by the benchmark interest rate of the central bank, but the benchmark interest rate of the central bank will not change easily, so the mortgage interest rate cannot reflect the supply and demand relationship of market funds. Therefore, after 20 19, the mortgage interest rate benchmark was replaced by the LPR interest rate with a higher degree of marketization.
What does LPR mean? The full name of LPR interest rate is the loan market quotation, which is generated by the same quotation of several banks and published once a month. At present, LPR includes 1 year and more than 5 years, in which the mortgage interest rate anchors the 5-year LPR interest rate.