What is LPR?
Its full name is "loan market quotation". Simply put, it is the loan market quotation formed by the People's Bank of China's comprehensive quotation of 18 representative commercial banks. Published on the 20th of each month (postponed in case of holidays), currently including 1 year and more than 5 years.
12 On February 20th, the People's Bank of China authorized the National Interbank Funding Center to announce the quoted interest rate (LPR) of the new loan market:1year LPR was 3.8%, down 5 basis points from the previous period; The five-year LPR is 4.65%, which has not been adjusted compared with the previous period. The industry believes that the decline of 1 year LPR reflects the increasing support for reducing the financing cost of the real economy.
The downward adjustment of 1 year LPR will bring multiple impacts. The decrease of 1 year LPR is mainly due to the narrowing of bank spreads. Since the beginning of this year, banks have strengthened debt management, standardized innovative deposits, Internet deposits and structured deposits, and the overall debt cost of banks has decreased. Combined with the cumulative effect of RRR's two cost cuts this year, the LPR quotation is also lowered accordingly.
The People's Bank of China implemented the second comprehensive RRR in the year at sunset on June 5438+February 65438+May, with a total investment of 2.2 trillion yuan. RRR cut interest rates twice this year, which provided banks with long-term low-cost funds and reduced the cost of funds. At the same time, since last year, the supervision of deposit interest rate and the adjustment of deposit interest rate pricing mechanism have been strengthened to promote the reduction of bank debt costs.
At present, China's economic development faces three major pressures: demand contraction, supply shock and expected weakening. Lowering the LPR interest rate at this stage will help to play the countercyclical role of monetary policy and help the economy to maintain a stable and healthy operation. The decline of 1 year LPR is mainly to push down the short-term and medium-term loan interest rates and reduce the financing cost of the real economy. LPR has remained unchanged for more than five years, mainly because it has not sent a loose signal to the real estate market. This shows that the stable orientation of monetary policy has not changed, and the next step will be to make monetary policy more flexible and moderate through fine-tuning and pre-adjustment.