Core Points - The Loan Prime Rate (LPR) for 1-year remains at 3.0% and for 5-year and above at 3.5%, unchanged from the previous period [1] - The LPR serves as a benchmark for loan pricing, calculated based on the rates offered by major banks to their best clients [1] - The stability of the LPR aligns with market expectations and reflects the unchanged basis of the central bank's open market operations [1] Group 1 - The People's Bank of China (PBOC) has maintained the LPR, which is expected to support the implementation of various counter-cyclical measures in the second half of the year [1] - Economic data indicates that China's economic growth in Q2 exceeded market expectations, providing a solid foundation for achieving annual targets [1] - Analysts suggest that the unchanged LPR will help balance support for the real economy while maintaining the health of the banking system [1] Group 2 - Looking ahead, there is potential for LPR adjustments downward due to uncertainties in the external environment and efforts to boost domestic demand [2] - Analysts predict that the central bank may continue to lower interest rates in the second half of the year, which could lead to a further decrease in LPR [2] - The previous reduction in LPR in May was aimed at lowering financing costs for the real economy, particularly to counter external risks [2]

Core Viewpoint - The People's Bank of China has maintained the Loan Prime Rate (LPR) for both 1-year and 5-year terms at 3.0% and 3.5% respectively, for two consecutive months, aligning with market expectations due to unchanged policy rates since May [1] Group 1: LPR and Monetary Policy - The 1-year LPR remains at 3.0% and the 5-year LPR at 3.5%, reflecting stability in the current monetary policy environment [1] - Analysts suggest that the unchanged LPR is strategic, allowing for better alignment with upcoming counter-cyclical measures aimed at supporting the real economy and stabilizing the banking system [1][2] Group 2: Economic Outlook - Recent macroeconomic data indicates that China's economic growth rate and internal momentum in Q2 exceeded market expectations, providing a solid foundation for achieving annual targets [1] - There is an expectation of further interest rate cuts in the second half of the year to stimulate domestic demand and counteract external uncertainties, with potential impacts on LPR adjustments [2]