Zheng Quan Shi Bao Wang·2025-09-22 15:17Group 1 - The People's Bank of China (PBOC) has maintained the Loan Prime Rate (LPR) at 3.0% for the 1-year term and 3.5% for the 5-year term, consistent with previous rates and market expectations, marking four consecutive months of stability [1] - The LPR is influenced by the central bank's policy rates and the quotes from banks, with no adjustments made since a 10 basis point decrease in May, indicating a lack of motivation for further changes [1] - The net interest margin for commercial banks has dropped to 1.42% as of the end of Q2, remaining at a historically low level, which contributes to banks' reluctance to lower LPR quotes [1] Group 2 - Recent economic indicators released by the National Bureau of Statistics have underperformed against market expectations, with some enterprises still facing operational difficulties [2] - The PBOC's monetary policy stance is supportive, with an emphasis on moderately easing policies to ensure ample liquidity and reduce overall financing costs [2] - Market institutions generally believe that the potential for further decreases in loan rates is limited due to pressures on bank interest margins and rigid funding costs [2]