The People's Bank of China reduced the loan market quotation interest rate (LPR) as scheduled on Tuesday (June 20). This is the decline in China's LPR after 10 months.Not as expected as the outside world.According to the analysis, it is expected that more stable growth measures are expected to be introduced in the later period to promote the return of China's economy.
According to the website of the People's Bank of China, the one -year and five -year LPR was reduced by 10 basis points from the previous value, to 3.55%and 4.2%, respectively.
China recently reduced policy interest rates. Prior to this, the central bank cut interest rates on June 13th.The interest rate of the medium -term borrowing (MLF) is reduced by 10 basis points.After the short -term and medium -term policy interest rate adjustment, the central bank lowered LPR this time, which was expected by the outside world.
Zuo Xiaolei, the former chief economist of Galaxy Securities, pointed out in an interview with Lianhe Morning Post that after the central bank has lowered LPR, the reduction in the cost of financing of the real economy will help promote the development of the economy.The reduction in the cost of mortgages, and the pressure of developers' funds can also help relieve. On the whole, the property market will boost.
The key economic data indicators of China in April and May weakened, and economic growth momentum was significantly insufficient. The central bank recently cut interest rate cuts, showing that decision makers have decided to take more measures to promote economic growth and stable employment.While the central bank's series of monetary policy operations, the market has also rumored that Beijing will make a weak economy, brewing a package stimulus plan.
However, the five -year LPR downgrade is lower than external estimates, which has exacerbated the outside world's concerns about the prospects of China's economic recovery.Previously, some economists believed that the five -year LPR may be reduced by 15 basis points.
First Financial Network quoted Wang Qing, the chief macro analyst of Dongfang Jincheng, said that more market expectations have previously judged that the five -year LPR quotation will be reduced.It is necessary to reduce the cost of buying houses by guiding the interest rate of residential mortgage loans and reversing market expectations.Wang Qing believes that follow -up may further introduce other stabilization measures, including the flexible adjustment mechanism of second -hand mortgage interest rates.
Robert Carnell, chief economist at the Dutch International Group (ING), told AFP that due to the insufficient downgrade, it will not help much of the economy that boosts the trouble.It is unlikely to see a strong fluctuation in real estate demand, the construction industry may remain weak, and the local government will continue to feel the pressure of decreased land sales and fiscal tension.
Zuo Xiaolei analyzes that the central bank's monetary policy will be adjusted in a timely manner according to the changes in the macro situation, and comprehensively use the policy tool portfolio to achieve policy goals.It is also the possibility of eliminating the "ups and downs", and even if the next adjustment is continued, the official will be carried out in steps to avoid impact effects.
As the central bank's interest rate cut is lower than expected, the Hong Kong and Shanghai stock market led the Asian stock market on Tuesday.Among them, the Hong Kong stock market fell 1.79%, and the Shanghai Stock Exchange Index fell 0.47%.
