Zhongxin Finance, January 20 (Cheng Chunyu Shi Rui) On January 19, the People's Bank of China issued an announcement to adjust the list and release time of loan market quoted rate (LPR) quotation banks, starting from January 20, 2022 implement.

  This means that on January 20, the LPR will be released for the first time at 9:15.

Under the expectation of a 10 basis point cut in the Medium-Term Lending Facility (MLF) interest rate on the 17th, whether the LPR will be lowered today is of great concern.

Screenshot from the official website of the People's Bank of China

The LPR release time is adjusted to 9:15 on the 20th of each month

  On the evening of the 19th, the National Interbank Funding Center was authorized to issue an announcement on the adjustment of loan market quotation interest rate quotation banks and release time:

  In order to strengthen expectation management and promote a better connection between the release time of LPR and the operation time of the financial market, the release time of LPR is adjusted from 9:30 am on the 20th of each month (extended during holidays) to 9:15 am.

The list of LPR quotation banks was adjusted, and Bank of Xi'an and China CITIC Bank were not selected

  At the same time, in accordance with the requirements of the People's Bank of China Announcement [2019] No. 15, in order to improve the quality of quotations of the loan market quotation rate (LPR) quotation banks, the People's Bank of China guided the interest rate self-discipline mechanism to conduct an assessment of the LPR quotation banks on and off the market, and adjusted according to the assessment results. LPR Quote Line.

  The list of adjusted LPR quotation lines is as follows:

  Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, Postal Savings Bank of China, China Merchants Bank, Industrial Bank, Shanghai Pudong Development Bank, China Minsheng Bank, Bank of Nanjing, Bank of Taizhou, Shanghai Rural Commercial Bank, Guangdong Shunde Rural Commercial Bank, Shenzhen Qianhai WeBank, Zhejiang MYbank, Citibank (China), Standard Chartered Bank (China).

  According to media reports such as Securities Times, in the list of new quotation banks, Postal Savings Bank of China and Bank of Nanjing were newly shortlisted, while Bank of Xi'an and China CITIC Bank were not selected.

In the data map, photo by Jiang Qiming, a reporter from the News Agency

Whether LPR will cut interest rates has attracted much attention

  On January 17, the People's Bank of China launched a 700 billion yuan one-year medium-term lending facility (MLF) operation and a 100 billion yuan seven-day open market reverse repurchase operation. Market expectations for LPR rate cuts.

  At the press conference of the State Council Information Office held on January 18, Liu Guoqiang, deputy governor of the People's Bank of China, said that he would "open the monetary policy toolbox a little bigger", and proposed that "the plan of the year lies in the spring, so we must hurry up. Do things, operate forward-looking", the market has paid great attention to the above new formulation.

  In addition, Sun Guofeng, director of the Monetary Policy Department of the People's Bank of China, said at the press conference that LPR will fully reflect changes in market interest rates in a timely manner, guide corporate loan interest rates to decline, and effectively reduce corporate financing costs.

  Li Xunlei, chief economist of Zhongtai Securities, told Zhongxin Finance that among various monetary policy tools, the reduction of the loan market quoted rate (LPR) may be used more frequently.

After the MLF is lowered, the next step is the loan market quoted rate (LPR). my country's practice is usually "small steps and quick drops" - small steps and multiple drops.