Group 1 - The People's Bank of China (PBOC) announced that the 1-year Loan Prime Rate (LPR) remains at 3.0% and the 5-year LPR at 3.5%, aligning with market expectations and reflecting multiple influencing factors such as policy observation, bank margin pressure, and external environment [1] - In May, financial authorities implemented a series of policies including a 0.5 percentage point reserve requirement ratio cut and a reduction in policy rates, which led to a 10 basis point decrease in LPR [1] - The stability of the 7-day reverse repurchase rate at 1.40% has been a direct reason for the difficulty in lowering the LPR [1] Group 2 - The external environment is significant, as the U.S. Federal Reserve is maintaining its federal funds rate between 4.25% and 4.50%, which could increase the volatility of the RMB exchange rate if the LPR decreases too quickly [2] - Current loan rates for enterprises and residents are at historical lows, with the weighted average interest rate for new corporate loans at approximately 3.3%, down 45 basis points year-on-year, and new personal housing loan rates at about 3.1%, down 60 basis points [2] - The pressure on banks' liabilities has not significantly improved, leading to insufficient motivation for banks to actively lower the LPR [2] Group 3 - Market views suggest that while there may still be potential for rate cuts in the second half of the year, the speed and extent of any decreases will be constrained by multiple factors [3] - The current issue of "expensive financing" is not seen as the primary concern, and future reductions in overall financing costs may focus on lowering non-interest costs such as collateral and intermediary service fees [3] - Attention should be paid to upcoming key meetings and decisions from overseas central banks, as these will influence the necessity and feasibility of further rate cuts in China [3]