China News Service, Beijing, January 20 (Reporter Pang Wuji) In the beginning of 2022, China's loan market quoted interest rate (LPR) will be lowered.

  On the 20th, the People's Bank of China authorized the National Interbank Funding Center to announce the latest LPR: the 1-year LPR was 3.7%, which was lowered by 10 basis points after the 5 basis points reduction in December last year; the 5-year LPR was 4.6. %, down 5 basis points from the previous month, and fell again after a lapse of 21 months.

  Regarding the reason for this LPR reduction, Wen Bin, chief researcher of China Minsheng Bank, pointed out that historically, the MLF (Medium-Term Lending Facility) interest rate, as a policy interest rate, has a strong guiding significance for the decline of LPR quotations.

During the period from August 2019 to the end of 2021, the 1-year MLF interest rate was lowered three times. After that, the LPR quotations of the month followed the LPR quotations.

  He pointed out that on January 17 this year, the central bank overextended the 7-day reverse repurchase and 1-year MLF, and the winning bid rate was lowered by 10 basis points, which was the main reason for the decline in LPR quotations this month.

The lowering of the policy interest rate will lead to a decline in LPR quotations, which will help reduce the comprehensive financing cost of the real economy.

  The real estate financial environment will be improved if the LPR with a period of more than 5 years is reduced again.

According to the mainstream housing loan interest rate data in key cities released by the Shell Research Institute, in January 2022, the mainstream first-home loan interest rate in the 103 key cities monitored was 5.56%, and the second-home loan interest rate was 5.84%, both down 8 basis points from the previous month; 1 The monthly average loan period is 50 days, 7 days shorter than the previous month.

  Xu Xiaole, chief market analyst at Shell Research Institute, pointed out that in January, the average mortgage interest rate and loan cycle in 103 key cities had returned to a reasonable level in the middle of last year.

Among them, the mainstream interest rates of housing loans in 59 cities were lowered month-on-month, an increase of 19 from the previous month, and the mortgage interest rates in key cities such as Guangzhou, Shenzhen, Hangzhou, Nanjing, and Suzhou were all lowered.

  In terms of lending cycle, the lending cycle in 64 cities in China was shortened from the previous month.

Bank lending in the four first-tier cities has accelerated. Guangzhou has shortened by more than 40 days compared with the previous month, and Beijing has shortened 12 days on average to less than 70 days.

The average loan period in second-tier cities such as Hefei, Wuhan, Hangzhou, Nanjing, Xiamen, and Chengdu was shortened by more than 20 days.

  Looking ahead, the housing big data project team of the Chinese Academy of Social Sciences Financial Strategy Research Institute believes that although new housing loans are negotiated by both sides of the market, they generally fluctuate with the rise and fall of the benchmark interest rate, so mortgage lenders can get interest rate cuts.

However, the current level of mortgage interest rates is on the high side, and it is expected that there is still room for further reductions.

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