Experts: LPR with a period of more than 5 years has fallen after 20 months: it will help stabilize market expectations

　　Zhongxin Finance, January 20 (Shi Ruigong Hongyu) The People's Bank of China authorized the National Interbank Funding Center to announce that the loan market quoted interest rate (LPR) will be lowered on January 20, 2022: 1-year LPR is 3.7%, A decrease of 10 basis points from the previous month; LPR with a maturity of more than 5 years was 4.6%, a decrease of 5 basis points from the previous month.

This is the first time in 20 months that LPR over a 5-year period has fallen again.

　　Wen Bin, chief researcher of China Minsheng Bank, told Zhongxin Finance that the 5-year and above varieties will be reduced by 5 basis points, and the 1-year LPR interest rate on December 20 last year will be reduced by 5 basis points. This time, the 1-year LPR interest rate will be reduced by 10 basis points. In the past two months, the cumulative reduction of 15 basis points has been carried out twice in a row, and the counter-cyclical control of monetary policy has been strengthened, which reflects the pre-emptive force of macro policies, which helps to stabilize market expectations, enhance the confidence of market players, and encourage enterprises to increase medium and long-term investment. It will have a positive effect on the current expansion of domestic demand, stabilization of external demand and the smooth operation of the real estate market.

　　Wen Bin analyzed that in view of the current "triple pressure" on my country's economy, in the next stage, it is expected that monetary policy will continue to combine cross-cyclical and counter-cyclical adjustment, and give full play to the dual functions of monetary policy tools in terms of total volume and structure, and increase Strong support for stable growth.

On the one hand, in terms of total volume, it will continue to make good use of the combination of various monetary policy tools such as statutory deposit reserve ratio, open market operations, and medium-term lending facility (MLF) to maintain reasonable and sufficient market liquidity; on the other hand, it will make good use of structural currencies. Policies are "additional", continue to increase targeted support for small and micro enterprises, technological innovation, green development and other fields, and promote the stability of comprehensive financing costs.

(Finish)