In line with widespread market expectations, the loan market quoted interest rates (LPR) maintained the same levels in December for both terms. For the entire year of 2024, the 1-year LPR has cumulatively decreased by 35 basis points, and the LPR for terms over 5 years has cumulatively decreased by 60 basis points. The annual cumulative decline is the largest since the LPR reform. On December 20, the central bank authorized the National Interbank Funding Center to announce: the 1-year LPR is 3.1%, and the LPR for terms over 5 years is 3.6%. Analyzing the reasons for the LPR's "holding steady" in December, China Everbright Bank macro researcher Zhou Maohua stated that the main reason is that the policy rate—the 7-day reverse repurchase operation rate remains stable—while the net interest margins of some banks are under pressure. Wang Qing, chief macro analyst of Dongfang Jincheng, believes that the fundamental reason is that since the introduction of a package of incremental policies, the economic climate has improved since October, and the real estate market is also showing signs of recovery. The current focus is on further transmitting the effects of previous policies to the real economy. (Shanghai Securities Journal)