The People's Bank of China announced this morning (20th) that the loan market quoted interest rate (LPR) for September remained unchanged. The one-year LPR remained at 3.35% per month, while the LPR for more than five years remained at 3.85% per month. According to the "Financial Union" quoting industry experts, the main reason for the stability of the September LPR interest rate is the large net interest spread pressure of domestic banks. The policy rate (7-day reverse repurchase rate) remained unchanged, and there is not much urgency to continuously lower the policy rate in the short term and guide LPR quotes to follow suit.

Looking ahead, industry insiders believe that after the Federal Reserve cut interest rates to a large extent, China has more room for flexible adjustment of monetary policy, and the probability of subsequent interest rate cuts and reserve requirement ratio cuts is increasing. The central bank may lower the main policy interest rate in the fourth quarter of this year, which will guide LPR quotes to follow suit.