April LPR quotes announced for 12 consecutive months, "holding on hold"
On April 20, the People's Bank of China authorized the National Interbank Funding Center to announce that the market quoted interest rate (LPR) for loans on April 20, 2021 is 3.85% for 1-year LPR and 4.65% for 5-year or longer LPR.
Since April 2020, LPR has remained unchanged for 12 consecutive months.
MLF (Mid-term Lending Facility) operating interest rate is the reference basis for 1-year LPR quotations.
Since September last year, the two have been keeping synchronized adjustments.
In order to maintain reasonable and sufficient liquidity in the banking system, the central bank launched a 150 billion one-year medium-term lending facility (MLF) operation on April 15 (including the renewal of MLF maturity on April 15 and TMLF maturity on April 25) And 10 billion yuan of reverse repurchase operations in 7 days.
The interest rates of MLF and reverse repurchase operations have maintained their previous values and have not changed.
Market analysts believe that the open market operations on the 15th generally reflect the continuity, stability and sustainability of monetary policy.
It is expected that the policy interest rate in the next phase will remain stable, and the market interest rate will have limited upward space.
Sun Guofeng, Director of the Monetary Policy Department of the Central Bank, stated at a press conference on financial statistics for the first quarter of 2021 on April 12 that the next step in monetary policy should be to adhere to the concept of cross-cycle design, take the current and long-term into consideration, and maintain macro policy continuity and stability , Sustainability, prudent monetary policy is flexible, precise, reasonable and appropriate, and maintains the growth rate of the money supply and the scale of social financing to basically match the nominal economic growth rate.
Increase support for key areas and weak links of the national economy to ensure that the overall financing costs of small and micro enterprises are steadily reduced, and the economy operates smoothly and healthily.
Hue, chief economist of Founder Securities, believes that there is no possibility of substantial changes in monetary policy.
For a period of time in the future, neither the MLF operating interest rate nor the loan market quote interest rate (LPR) will need to be raised.
On the one hand, the real economy is "unevenly hot and cold," and the foundation for recovery is not yet solid. In the future, the manufacturing industry will still face pressures such as exchange rate appreciation, rising freight rates, and rising raw material prices reflected by the rise in PPI. Funds are still needed in terms of interest rates and volume On the other hand, because of the good economic data and strong economic activities, there is no possibility of greater easing. The main emphasis is on precision drip irrigation and the health of the credit structure. The overall direction of the monetary policy is to support the real economy and small and medium-sized enterprises. Micro-enterprise.
Text/Reporter Cheng Jie