Jin Rong Shi Bao·2025-06-06 01:42Core Viewpoint - The recent reduction in the Loan Prime Rate (LPR) and deposit rates by major banks is expected to stimulate the real economy and support high-quality development in the banking sector [2][5][8] Group 1: LPR Adjustment - The LPR for one year and five years has decreased by 10 basis points to 3% and 3.5% respectively, marking the first adjustment of the year [1][3] - The adjustment follows a reduction in the 7-day reverse repurchase rate by 10 basis points, which is now seen as a new pricing anchor for the LPR [4][3] - The LPR's decline is part of a broader monetary policy easing aimed at reducing borrowing costs for medium to long-term financing [5][8] Group 2: Deposit Rate Changes - Major banks, including six state-owned commercial banks, have lowered their RMB deposit rates by 5 to 25 basis points [1][6] - The adjustments include a 5 basis point reduction in demand deposit rates and a 15 to 25 basis point reduction in various term deposit rates [6][7] - This move is anticipated to help banks lower funding costs and stabilize net interest margins, enhancing their ability to support the real economy [7][8] Group 3: Impact on the Real Economy - The dual reduction in lending and deposit rates is expected to lower overall financing costs, thereby encouraging investment and production [8] - Continuous policy support from fiscal, monetary, and industrial sectors is enhancing market confidence and directing more funds towards capital markets and real enterprises [8] - The banking sector is urged to utilize various structural monetary policy tools to direct credit resources towards key areas of the real economy [8]