Guide the market quoted interest rate (LPR) of loans with 1-year term and over 5-year term to decline and reduce the entity financing cost; Enrich the toolbox of structural monetary policy, and pinpoint the key areas and weak links of drip irrigation; We will establish new financial instruments and guide financial institutions to increase support for major infrastructure projects... To promote steady economic growth and sustained monetary policy. The report on the implementation of China's monetary policy in the second quarter of 2022 points out that we should strengthen the implementation of the prudent monetary policy, give full play to the dual functions of the total amount and structure of monetary policy tools, take the initiative to respond, boost confidence, do a good job in cross cycle adjustment, take into account short-term and long-term economic growth, price stability, internal and external balance, adhere to the principle of not "flooding" and not issuing excessive money, and provide more powerful Higher quality support. -- give play to the efficiency of the reform of the quoted interest rate in the loan market, and promote the continuous decline of the real loan interest rate. The national inter-bank lending center authorized by the people's Bank of China announced that the quoted interest rate (LPR) of the loan market on August 22, 2022 was: 1-year LPR was 3.65%, and 5-year or more LPR was 4.3%, down 5 basis points and 15 basis points respectively from the previous month. This is also a significant 15 basis point reduction of LPR over 5 years after the 15 basis point reduction in May. The actual effect and signal significance are very significant. In the view of the insiders, from last week's medium-term lending facility (MLF) interest rate and the open market reverse repurchase operation interest rate both fell by 10 basis points to the current LPR decline, which is a concrete manifestation of the monetary policy's intensified implementation to help the real economy recover. Dong ximiao, chief researcher of Zhaolian finance, said that judging from the economic and financial data in July, stable growth is under great pressure, and the effective financing needs of enterprises and residents are insufficient. Through the LPR downturn, financial institutions can be guided to continue to reduce the financing cost of market entities, reduce the burden of enterprises and residents, stimulate the financing demand of enterprises and residents, and enhance the stability of the total credit growth. In the view of Liang Si, a researcher of the Bank of China Research Institute, since the reform of the LPR formation mechanism in August 2020, China's interest rate transmission mechanism has been further opened up in the past three years. The interest rate system from policy interest rate to market benchmark interest rate and then to market interest rate transmission has been basically established. The loan interest rate of financial institutions follows the LPR in the same direction, and the implicit lower limit of loan interest rate has been broken. According to the data of the central bank, by the end of the second quarter of 2022, the enterprise loan interest rate had dropped to 4.16%, the lowest in history. The LPR reform strongly supported the development of the real economy. – targeted and precise efforts have been made to enrich the toolbox of structural monetary policy. Chongqing Qianjiang Jiahui Department Store Co., Ltd. is a key enterprise in Qianjiang District to supply citizens with living materials. After learning about the temporary shortage of the company's funds, the Bank of Chongqing took the initiative to provide on-site services to the company. Finally, the bank provided a working capital loan of 4.5 million yuan to the company by using the small refinancing funds of the central bank, without the need for the company to provide collateral and third-party guarantee. This is exactly the epitome of the Chongqing Business Management Department of the people's Bank of China guiding the local legal person banks in their jurisdiction to actively use re loans to do a good job in helping enterprises to alleviate their difficulties. Since the beginning of this year, it has helped the steady economic growth, and a series of achievements have been made
Edit：Wei Li Bin Responsible editor：Yin Bing
Source：Economic Information Daily
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