Core Viewpoint - The Loan Prime Rate (LPR) has been lowered for the first time this year, with the one-year LPR at 3% and the five-year LPR at 3.5%, both down by 10 basis points from previous values [1][2]. Group 1: LPR Adjustment and Market Expectations - The LPR reduction aligns with market expectations, following a 0.1 percentage point decrease in the policy rate announced by the central bank [1][2]. - Analysts predict further interest rate cuts in the second half of the year, indicating potential for additional LPR declines [1]. Group 2: Impact on Financing Costs - The reduction in the LPR is expected to significantly lower financing costs for both enterprises and residents, stimulating internal financing demand [2]. - Improvements in banks' funding costs, due to previous deposit rate cuts and liquidity management, have facilitated the LPR decrease [2]. Group 3: Deposit Rate Adjustments - A new round of deposit rate cuts has commenced, with state-owned banks reducing various deposit rates, which is anticipated to stabilize banks' net interest margins [3]. - The overall deposit rate is expected to decrease by approximately 0.11 to 0.13 percentage points, offsetting the impact of lower loan rates on banks' asset yields [3]. Group 4: Housing Market Implications - The reduction in the five-year LPR is directly linked to lower mortgage costs, with potential adjustments in housing loan rates in major cities like Beijing [4]. - The adjustment is expected to alleviate repayment pressures for existing homeowners as mortgage rates are re-evaluated [4][6]. Group 5: Support for Housing Demand - The recent decrease in housing provident fund loan rates, alongside the LPR cut, is projected to save residents over 20 billion yuan annually in interest payments, supporting housing demand [5]. - Overall, these financial policy adjustments are seen as beneficial for stabilizing the real estate market and meeting housing needs [6].
5月份LPR下调10个基点 年内仍有下行空间
Zheng Quan Ri Bao·2025-05-20 16:14