Mainland China’s LPR interest rate remains unchanged, and the market expects that there is still room for interest rate cuts and RRR cuts

The mainland keeps its loan interest rate LPR unchanged, and analysts predict that there is still room for interest rate cuts and reserve requirement ratio cuts in the mainland. The banking system helps digest this. This source comes from interest rate differentials, and it is necessary to maintain the stability of financing channels. The second thing is...

Mainland China keeps lending rate LPR unchanged

Mainland China kept its lending rate LPR unchanged, showing the central bank's confidence in the current economic situation. This also means that there is still room for further easing of monetary policy in the mainland, including measures such as interest rate cuts and reserve requirement ratio cuts.

Banking system helps digestion

The banking system plays an important role in maintaining the loan interest rate LPR unchanged. They help absorb excess liquidity and ensure the stability of financing channels. This also helps maintain the healthy functioning of the financial system.

Interest rate considerations

Banks need to consider interest margin factors when dealing with excess liquidity. This is an important way to ensure profitability of banking business and also helps to stabilize market interest rates.

• Maintain stable financing channels
• Ensure the financial system operates healthily
• Consider interest rate differentials

The People's Bank of China has no intention to provide further liquidity for the time being.

China Everbright Bank believes that the People's Bank of China has no intention to provide further liquidity for the time being, which shows the People's Bank of China's view on market liquidity. With stable and abundant liquidity, significant monetary easing is unlikely in the short term.