On December 21st, the final LPR (Loan Market Quotation Rate) for 2024 was released. The People’s Bank of China authorizes the National Interbank Funding Center to announce that on December 20, the 1-year LPR was 3.1%, and the 5-year LPR was 3.6%. The quotations of the two maturity varieties remained unchanged. The Chief Economist of CITIC Securities clearly stated that the recent Central Economic Work Conference has set the tone for the next stage of monetary policy to be “moderately loose”, while also mentioning “timely interest rate cuts and reserve requirement ratio cuts”. There is still room for further LPR cuts. In addition, under the demand for optimizing the quality of LPR quotations, there may be significant room for unilateral downward adjustment of LPR. (Securities Daily)
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