The people's Bank of China authorizes the National Interbank Funding Center to announce that the loan market quotation rate (LPR) on June 20, 2022 is: 1-year LPR is 3.7%, and 5-year or more LPR is 4.45%. This time, the LPR interest rate remained unchanged, in line with market expectations. However, industry insiders generally believe that looking into the future, there is still room and possibility for LPR to decline, which will also guide the entity loan interest rate to continue to decline. Wangqing, chief Macro Analyst of Dongfang Jincheng, said that the LPR quotation was formed by adding points to the MLF (medium-term lending facility) interest rate. The MLF interest rate remained unchanged in June, which means that the pricing basis of LPR quotation in that month has not changed; In terms of adding points, the reserve requirement reduction was not implemented in May, but the credit supply was significantly accelerated. Therefore, from the perspective of bank capital cost and the balance of supply and demand in the loan market, the quotation banks in June lacked the motivation to reduce and add points. In addition, in May, the price of LPR with a maturity of more than 5 years decreased by 15 basis points, a large margin, which will also, to a certain extent, absorb the impact of the April RRR reduction and the establishment of a market-based adjustment mechanism for deposit interest rates on the decline in the cost of bank liabilities. Therefore, the price of LPR in June did not change, which was in line with the general expectation of the market. Looking ahead, it is still possible for LPR to go down. Wang Qing believes that the focus of monetary policy operation next will be to stabilize the policy interest rate, focus on guiding the downward trend of loan interest rate, continue to reduce the financing cost of the real economy, and consolidate the momentum of economic recovery; This also includes lowering the mortgage interest rate and promoting the recovery of the property market in the third quarter. The LPR reform provides corresponding policy tools for regulators. Specifically, in the second half of the year, while the MLF interest rate remains unchanged, the regulators can guide the bank's capital cost downward, promote the LPR quotation downward, and then reduce the loan interest rates of enterprises and residents. Looking back to may, in the LPR on May 20, the mortgage interest rate was lowered by 15 basis points to 4.45% over the five-year period, which has driven the mortgage interest rate downward. In June, 2022, the interest rate of the first set of mainstream housing loans in 103 key cities monitored by Shell Research Institute was 4.42%, and the interest rate of the second set was 5.09%, down 49 and 23 basis points respectively from the previous month, a new low since 2019. Liulijie, a market analyst at the shell Research Institute, said that according to the housing loan data of 103 cities monitored by the shell Research Institute in June, the loan interest rates of the first and second houses in 56% of cities have been reduced to the lower limit, reducing the loan costs of home buyers to the greatest extent. However, this also means that more than 40% of urban mortgage interest rates are higher than the lower limit, and there is still room for decline in the future. (Xinhua News Agency)