LPR is the quoted interest rate in the loan market, which is referenced by many banks including China, and BP is the abbreviation of basis point, representing 0.0 1 percentage point. Therefore, LPR 10bp means that LPR has been raised by 0.0 1 percentage point, while LPR0bp means that lpr has not changed.
However, the People's Bank of China has pointed out in the monetary policy implementation report in the first quarter of 2023 that the loan market quotation rate (LPR) will be lowered by 0.39 percentage points since the reform, and will be asymmetrically lowered by 0. 15 percentage points in the fourth quarter of 2022.
All, as soon as possible, fully transmitted to the real economy, play an important role in the market-oriented adjustment mechanism of deposit interest rates, and promote the stable and declining comprehensive financing costs of enterprises.
Pricing policy
The People's Bank of China announced the establishment of a centralized quotation and release mechanism for LPR from 20 131October 25th. On August 2019 17, the People's Bank of China issued an announcement to reform and improve the formation mechanism of quotation interest rate in the loan market.
LPR has been reformed in six aspects: citation principles, composition methods, terminology types, citation lines, citation frequency and application requirements. At the same time, the Chinese name of the best loan interest rate was changed to the loan market quotation, and the English name of LPR remained unchanged.
On August 25th, 2020, 12, five state-owned banks, namely ICBC, China Construction Bank, Agricultural Bank of China, Bank of China and Postal Savings Bank, announced at the same time that from August 25th, individual housing loans within the range of batch conversion will be uniformly adjusted to LPR (loan market quotation) pricing method according to relevant rules.
At the same time, it is clear in the announcement that after the batch conversion is completed, if there is any objection to the conversion result, it can be transferred back through relevant channels or negotiated with the loan handling bank before February 3, 2020.