On February 20th, Sino-Singapore Jingwei Client announced the first LPR offer for the Year of the Ox.
On the 20th, the National Interbank Funding Center released data showing that on February 20, 2021, the loan market quoted interest rate (LPR) was: 1-year LPR was 3.85%, and 5-year or more LPR was 4.65%.
The above LPR is valid until the next LPR is issued.
Sorting out the previous quotations, so far, LPR has been "standstill" for 10 consecutive months.
Source: National Interbank Funding Center
The first trading day (February 18) after the Spring Festival holiday coincides with the monthly routine operation of MLF.
The central bank issued an announcement on the same day that cash was gradually returned to circulation after the Spring Festival. The 200 billion MLF operation was carried out on the same day, and the interest rate remained unchanged at 2.95%. At the same time, the 20 billion reverse repurchase operation was carried out, and the winning bid rate remained at 2.20%.
It is worth mentioning that when the central bank launched the MLF operation on April 15, 2020, the winning bid rate was reduced by 20 basis points from 3.15% to 2.95%, and it has remained unchanged since then.
Before the announcement of the LPR quotation, experts predicted that the central bank mentioned in the "China Monetary Policy Report for the Fourth Quarter of 2020" that "the key to judging the trend of short-term interest rates is to see whether the policy interest rate changes." LPR quotations are mainly anchored The MLF interest rate has been fixed. The interest rate of the MLF sequel has not changed, and the probability of LPR this month will remain unchanged.
Such a large-scale net withdrawal of funds on the first day after the holiday is a rare operation in recent years.
However, many analysts pointed out that this does not mean that a new round of "tight currency" process has started again.
The CITIC Securities team pointed out in a previous research report that unexpected fluctuations in capital before the Spring Festival led to an upward trend in interest rates. After the Spring Festival, there will be a certain liquidity gap, and the capital is expected to maintain a tight balance.
Monetary policy is still based on stability, and there is no need to worry about the shift in monetary policy.
The central bank also stated in the "China Monetary Policy Implementation Report for the Fourth Quarter of 2020" that for the next stage of monetary policy operations, a prudent monetary policy should be flexible, accurate, reasonable and appropriate, adhere to the principle of stability, and do not make a sharp turn. Effectiveness, handle the relationship between economic recovery and risk prevention, and maintain the sustainability of normal monetary policy space.
(Zhongxin Jingwei APP)