China-Singapore Jingwei Client, April 20. According to the news on the central bank’s website on the 20th, the new loan market quote rate (LPR) of 20 has been released. The 1-year and 5-year LPRs have not been adjusted, and the 1-year LPR remains unchanged. 3.85%.
So far, LPR has been "standstill" for 12 consecutive months.
Screenshot of the central bank website
On August 17, 2019, the Central Bank announced that LPR will be used as the main reference for new loans issued by banks and will be released on a monthly basis.
After the largest single-month drop since the reforms were launched on April 20, 2020, LPR of one-year and more than five-year periods has been "holds on hold" for 12 consecutive periods.
As the basis for the LPR quotation, this month's Mid-term Lending Facility (MLF) interest rate has not been adjusted.
On April 15, the central bank launched a 150 billion MLF operation, including the renewal of the MLF expiration on April 15 and the expiration of the Targeted Medium-term Lending Facility (TMLF) on April 25. The interest rate for this operation remains unchanged at 2.95%. .
The maturity of MLF and TMLF are 100 billion yuan and 56.1 billion yuan respectively, and the total amount of the two is 156.1 billion yuan.
In terms of scale, the 150 billion yuan MLF sequel was slightly reduced by 6.1 billion yuan.
In this regard, Hue, chief economist of Founder Securities, believes that neither the MLF operating interest rate nor the loan market quote interest rate (LPR) will be necessary for a period of time to come.
Wang Qing, chief macro analyst at Oriental Jincheng, believes that the lack of an increase in MLF operations in April is mainly due to the relatively loose liquidity in the current market in the medium and long term.
He had predicted that the high probability of the current LPR quotation will remain unchanged.
Sun Guofeng, Director of the Central Bank’s Monetary Policy Department, stated that the central bank will follow the requirements of a prudent monetary policy to be flexible, accurate, reasonable and appropriate, pay close attention to changes in fiscal revenue and expenditure and market liquidity supply and demand in April, and comprehensively use various monetary policy tools such as open market operations. Accurate adjustment of liquidity will keep the banking system's liquidity reasonable and sufficient, and provide a suitable liquidity environment for the issuance of government bonds.
(Zhongxin Jingwei APP)