Reported 8 months ago
On June 20, 2024, the People's Bank of China announced that the Loan Prime Rate (LPR) for June remained unchanged from the previous values, with the 1-year LPR at 3.45% and the 5-year LPR at 3.95%, meeting market expectations. Analysts suggest that due to challenges such as the narrowing bank interest margins and uncertainties in the US interest rate outlook, the potential for policy rate cuts in China is limited. Despite expectations, the lack of interest rate adjustments may be due to limited stimulus effects on the housing market from rate cuts, as seen with previous policy changes like the '517 New Policy' in May. The connection between LPR and MLF rates may not be direct, and future adjustments will depend on market conditions.
Source: YAHOO