Core Points - The People's Bank of China announced that the Loan Prime Rate (LPR) for one year remains at 3.0% and for five years or more at 3.5%, unchanged for five consecutive months [1] - Experts believe that the stability of the LPR aligns with market expectations, indicating no changes in the pricing basis for October [1] - The low net interest margin of commercial banks limits their motivation to lower the LPR quote [1] Summary by Sections LPR Stability - The LPR has remained stable for five months, with the one-year rate at 3.0% and the five-year rate at 3.5% [1] - This stability reflects the unchanged pricing basis for October, as anticipated by the market [1] Market Conditions - Major medium to long-term market interest rates, including the one-year interbank certificate of deposit yield, have risen slightly, increasing the financing costs for commercial banks [1] - The weighted average interest rate for newly issued corporate loans in September was approximately 3.1%, down about 40 basis points year-on-year, while the rate for personal housing loans was also around 3.1%, down about 25 basis points year-on-year [1] Future Outlook - Experts suggest that there is still room for the LPR to decline, especially as measures to boost domestic demand and stabilize the real estate market are implemented [1] - The central bank may inject long-term liquidity into the banking system through various policy tools, potentially leading to a decrease in the LPR in the coming months [2]

智通财经APP获悉，10月17日，港元拆息普遍向上，隔夜息报3.61524%，升19.107基点；一周拆息升 13.19基点，报3.5319%，两周则升11.869基点，报3.5319%。与楼按相关的一个月拆息报3.53167%，升 6.673基点。 | 到期日 | 港元利息結算率 | | --- | --- | | 隔夜 | 3.61524 | | 1 星期 | 3.53190 | | 2 星期 | 3.53190 | | 1 個月 | 3.53167 | | 2 個月 | 3.54482 | | 3 個月 | 3.59173 | | 6 個月 | 3.42917 | | 12 個月 | 3.32940 | 反映银行资金成本的三个月拆息报3.59173%，升6.018基点。长息方面，六个月拆息跌0.351基点，报 3.42917%，一年期则跌2.798基点，报3.3294%。 ...

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].