Core Viewpoint - The LPR (Loan Prime Rate) has remained unchanged for three consecutive months, with the 1-year rate at 3.0% and the 5-year rate at 3.5%, reflecting stability in the current economic environment [3][4]. Group 1: LPR Stability - The unchanged LPR rates align with market expectations, as the central bank's 7-day reverse repurchase rate has also remained stable, indicating no changes in the pricing basis for LPR [4]. - The recent increase in market interest rates and the historical low net interest margins for commercial banks have reduced the motivation for banks to lower LPR quotes [4][5]. Group 2: Economic Context - The stability of LPR is attributed to a moderately strong macroeconomic performance in the first half of the year, reducing the immediate need for adjustments to enhance counter-cyclical regulation [5]. - Both corporate and personal loan rates are currently at low levels, suggesting that lowering the LPR is not an urgent priority [5]. Group 3: Future Outlook - Experts suggest that the marginal effects of interest rate cuts are diminishing, and alternative methods to reduce overall financing costs, such as lowering non-interest costs, may be more effective [5]. - If the Federal Reserve lowers rates in September, it could create a more favorable external environment for adjustments in China's monetary policy, potentially leading to a decrease in LPR [5]. - There is an expectation for stronger policies to stabilize the real estate market, with potential targeted reductions in the 5-year LPR to alleviate high mortgage rates and stimulate housing demand [5].

Summary of Key Points Core Viewpoint - The Hong Kong interbank offered rates (HIBOR) have increased across all tenors, indicating a rise in borrowing costs for banks and potentially affecting lending rates for consumers and businesses [1]. Group 1: Interest Rate Changes - The overnight HIBOR rose to 0.76935%, an increase of 39.316 basis points, marking the highest level since May 7 [1]. - The one-week HIBOR increased by 41.268 basis points to 0.94941% [1]. - The two-week HIBOR also saw a rise of 42.94 basis points, reaching 1.12696% [1]. - The one-month HIBOR is now at 1.45095%, up by 40.571 basis points, the highest since May 13 [1]. - The three-month HIBOR reported at 1.8606%, an increase of 13.572 basis points, the highest since July 18 [1]. - The six-month HIBOR rose by 9.322 basis points to 2.38411% [1]. - The one-year HIBOR increased by 5.179 basis points to 2.67143% [1]. Group 2: Implications for Borrowing Costs - The overall increase in HIBOR rates suggests a tightening of liquidity in the banking sector, which may lead to higher borrowing costs for consumers and businesses [1].