Two loan market quotations and interest rates have been simultaneously lowered by 10 basis points, and the momentum of consumption and investment is expected to increase-瞭望新时代网-瞭望时代，放眼世界

Two loan market quotations and interest rates have been simultaneously lowered by 10 basis points, and the momentum of consumption and investment is expected to increase

2023-06-21

On June 20th, the market quoted interest rate (LPR) for the new installment of loans was released, with a one-year LPR of 3.55% and a five-year or more LPR of 4.2%, both of which were 10 basis points lower than the previous installment, ending the previous nine consecutive months of "holding back". LPR is the pricing benchmark in the loan market. Industry experts generally believe that the decrease in policy interest rates will drive down the quotes for the two LPR varieties this month, effectively driving down the actual loan interest rates, reducing the financing costs of the real economy, and enhancing the growth momentum of consumption and investment. As the basis for the LPR quotation, the decrease in the Medium Term Lending Facility (MLF) operating interest rate was the direct reason for the LPR quotation reduction in June. On June 15th, the People's Bank of China launched an MLF operation of 237 billion yuan, and the bid winning interest rate decreased by 10 basis points to 2.65%. Previously, on June 13th, the People's Bank of China launched a 2 billion yuan reverse repurchase operation, and the bid winning interest rate also decreased by 10 basis points to 1.9% compared to before; On the same day, the People's Bank of China also announced the standing lending convenience interest rates for overnight, 7-day, and 1-month maturities, with interest rates for each period decreasing by 10 basis points. Wen Bin, chief economist of China Minsheng Bank, said that recently, a series of operations such as the reduction of the listed interest rate of deposits, the control of "quasi demand" deposits, and the reduction of policy interest rates have been implemented, and the cost of bank liabilities has improved, opening up space for the decline of LPR quotation. Currently, there is also a practical need for interest rates to decline. Since the second quarter, the momentum of China's economic recovery has slowed down. "The manufacturing Purchasing Managers'Index, exports, real estate, credit, social finance and the latest macroeconomic data released in May all show that there is a certain pressure on the current economic operation." Wen Bin said that it is still necessary to reduce the financing costs of the real economy, which will help stabilize employment, expand investment, promote consumption, repair the confidence of business entities, stabilize market expectations, and further improve the investment and financing preferences of enterprises and residents. Since the second quarter, the economic recovery momentum has been stable and weak, and the recovery momentum of the real estate market has weakened. It is necessary for macroeconomic policies to moderately increase countercyclical adjustment efforts. Among them, guiding the real economy to reduce financing costs and further increasing support for the real estate industry is an important driving force for boosting the economy. "Wang Qing, Chief Macro Analyst of Dongfang Jincheng, believes that the LPR quotation was lowered in June, It will drive down the loan interest rates for enterprises and residents, especially for residential housing loans. According to relevant calculations, taking a "1 million yuan loan principal, 30 year term, and equal principal and interest" mortgage as an example, the current national mortgage interest rate for the first home is about 4%, and the monthly payment is 4774 yuan. If it is reduced by 10 basis points to 3.9%, the monthly payment will be 4717 yuan, a decrease of 57 yuan. The current national mortgage interest rate for the second home is about 4.9%, and the interest rate will be reduced by 10 basis points to 4.8%. The monthly payment will be reduced by 60 yuan. Wang Yunjin, Senior Researcher at Zhixin Investment Research Institute, stated that compared to the asymmetric downward adjustment in August last year (a 5 basis point decrease in one-year LPR and a 15 basis point decrease in five-year and above LPR), the short-term interest rate reduction in LPR this time is relatively larger, indicating that the bank's recent cost of funds has improved to some extent. At the same time, there is a significant demand for a downward trend in short-term interest rates due to the current macroeconomic policies promoting consumer recovery. Chief Research Officer of Zhaolian Finance

Edit：Hou Wenzhe Responsible editor：WeiZe

Source：economic daily

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