The interest rate of Chinas loan market is expected to be reduced as expected

After 10 months, the Loan market quotation interest rate (LPR) is lowered, which meets market expectations.

The People's Bank of China announced on Tuesday (June 20) that on the official website, on June 2010 basis points to 4.2%.LPR's last decline was in August last year.

Analysts have previously estimated that the one -year and five -year LPR will be reduced to revitalize the economy, especially the real estate market.

According to the surging news report, because LPR is formed on the basis of the interest rate of interim borrowing (MLF), in the context of the MLF interest rate on June 15Consensus has been basically formed.

China State -owned Bank and a number of national shares have lowered the deposit interest rate in early June. Among them, the two -year deposit decreased by 10bp (base point), and 15BP was reduced in three years and five -year.

Policy interest rate "interest rate cuts" are then opened.On June 13, the open market operation as a short -term policy interest rate for the first seven -day reverse repurchase interest rate was reduced for the first time in 10 months to 1.9%in 10 months, and the interest rates such as Standing Loan (SLF) and MLF were simultaneously reduced by 10BP.