Jing Ji Guan Cha Wang·2025-05-20 09:25Group 1 - The People's Bank of China has lowered the one-year and five-year LPR by 10 basis points to 3.00% and 3.50% respectively, following previous monetary policy adjustments [1][2] - The reduction in LPR is part of a broader monetary policy strategy that includes a 0.5 percentage point cut in the reserve requirement ratio, which is expected to release approximately 1 trillion yuan in long-term liquidity [2] - The five-year LPR has decreased by a total of 115 basis points from its peak in 2020, marking a new low since the marketization of housing loan pricing [2][4] Group 2 - Major banks have responded to the LPR reduction by lowering various deposit rates, which is expected to decrease the cost of home loans for consumers [4] - The adjustment in LPR will lead to a reduction in both new and existing mortgage rates, alleviating the repayment pressure on homeowners [4][5] - The recent cut in public housing fund loan rates by 0.25 percentage points may create more room for further adjustments in commercial housing loan rates [5]