22, the latest issue of loan market quotation rate was announced, and the market quotation rate of loans with a period of 1 year and more than 5 years, that is, LPR, both decreased compared with the previous period. The quoted market interest rate for one-year loans dropped from 3.70% to 3.65%, and the quoted market interest rate for loans with a term of more than five years dropped from 4.45% to 4.3%. As an important step in deepening interest rate market-oriented reform, the loan prime rate (LPR) has gradually replaced the loan benchmark interest rate as the "anchor" of loan interest rate pricing, and is released regularly every month.
The decline in LPR will support the recovery of effective demand for credit
The decline in the quoted interest rate in the loan market has attracted a lot of attention from the market. Experts said that the decline is in line with expectations and will support the recovery in effective demand for credit and boost market confidence.
Experts said that the loan market quoted interest rate fell in line with expectations. Since the beginning of this year, my country's macroeconomic recovery trend is not stable. According to the data released by the central bank, in July, social financing and RMB loan increments both declined, and the effective financing demand of enterprises and residents was insufficient.
Minsheng Bank Chief Economist Wen Bin: The foundation of the current macroeconomic recovery is not yet solid, and the effective demand for credit is still recovering. The LPR cut will help reduce the financing cost of the real economy, boost the confidence of market players, and support The effective demand for credit has picked up, helping the economy to operate within a reasonable range.
In addition, the reduction of the policy interest rate on August 15 also laid the foundation for the decline of the loan market quotation interest rate this month.
Dong Ximiao, researcher at Fudan University’s Institute of Finance: On August 15, the central bank launched the medium-term lending facility (MLF) and reverse repurchase operations, and the winning bid interest rate dropped by 10 basis points. LPR is added on the basis of MLF interest rate. When MLF interest rate decreases, LPR often decreases accordingly.
Asymmetric decline helps to boost medium and long-term credit demand
It is worth noting that the latest loan market quotation rate announced this time has different decline rates for one-year and five-year periods or more. Experts said that this will help boost the effective demand for medium and long-term credit.
Experts said that the current corporate loan interest rate is already at a historically low level, so the quoted market interest rate for one-year loans has dropped by 5 basis points this time, which is relatively small. The quoted market interest rate for loans with a term of five years or more dropped by 15 basis points this time, which is a relatively large drop.
Zhang Yuewen, researcher at the Institute of Finance, Chinese Academy of Social Sciences: On the one hand, it is to encourage enterprises to make medium and long-term loans, and at the same time carry out medium and long-term investment in fixed assets, and other investments, which are also beneficial to some key infrastructure construction projects in our country investment.
Wen Bin, Chief Economist of Minsheng Bank: The main reason is that the demand for medium and long-term loans is currently weak, and the decline in LPR interest rates over 5 years is greater than that of one-year, which will help boost the effective demand for medium and long-term credit and better support the real economy develop.
The quoted market interest rate for loans with a term of more than five years is closely related to personal housing loans. Personal housing loans generally use LPR with a term of more than five years as the pricing benchmark.
Dong Ximiao, a researcher at Fudan University's Institute of Finance: The decline in LPR with a period of more than 5 years will guide financial institutions to reduce the interest rates of new and existing mortgages, reduce the burden of mortgages, and promote the healthy and stable development of the real estate market.
What is the Loan Prime Rate (LPR)?
The loan market quotation rate is a reference benchmark for loan interest rates announced by the central bank on a regular basis and formed by a market-oriented approach. What can the loan market quoted interest rate explain? And what factors are related? Let's find out in detail.
Loan market quotation rate is quoted by the LPR quotation bank based on the loan rate executed by the LPR quotation bank for the best quality customers, on the basis of the interest rate of the medium-term lending facility, comprehensively considering factors such as capital cost, market supply and demand, risk premium, etc., as a financial institution The reference of loan interest rate pricing, other loan interest rates can be generated by adding or subtracting points on this basis.
Wen Bin, Chief Economist of Minsheng Bank: After the reform of the LPR (Loan Quoted Rate) quotation mechanism, new loans issued by commercial banks are mainly priced with reference to LPR (Loan Quoted Rate), and LPR (Loan Quoted Rate) is adopted in floating rate loan contracts. Quoted market rate) as the pricing basisallow. Therefore, the transmission between the policy interest rate and market interest rate is better realized, and the process of interest rate liberalization reform is accelerated.
It is understood that the quoted loan market interest rate has played an important role in promoting the market-oriented reform of loan interest rates.
Zhang Yuewen, researcher at the Institute of Finance, Chinese Academy of Social Sciences: The main factors that affect the quoted interest rate in the loan market include the current monetary policy, , market liquidity, and major quoting banks, a basic judgment on the credit risk in the real economy, such factors All will affect the adjustment of the loan market quoted interest rate.
Experts said that the current loan market quotation interest rate is announced once a month, which can more sensitively reflect changes in the supply and demand of funds in the market, help improve the efficiency of monetary policy transmission, and better meet the development needs of the real economy.
Personal housing loans will decrease accordingly
The quoted market interest rate for loans with a period of more than 5 years is closely related to residents' personal housing loans. After the reduction of the LPR with a period of more than 5 years, our mortgages will decrease accordingly.
Different from corporate loans, personal housing loans have a long term. At present, more than 99% of personal housing loan interest rates are linked to LPR with a term of more than 5 years. In actual housing loans, the loan repayment amount of people who choose floating interest rates will be related to changes in the quoted interest rates in the loan market. People who choose fixed-rate mortgages will not be affected by the decline in the quoted interest rate in the loan market.
However, the repayment amount of people who choose floating rate mortgages is not immediately able to adjust according to the latest loan market quotation rate, but is related to the re-pricing cycle selected by home buyers when they sign a contract with the bank. At present, there are mainly two ways for banks to re-pricing cycle : the first is to re-pricing on January 1 every year, and the second is to re-pricing 12 months after the contract expires. Therefore, borrowers need to determine the time when they can enjoy interest rate changes according to their own contracts and communicate with banks.
According to the housing loan amount of 1 million, the loan period of 30 years, and equal principal and interest repayment estimates, the average monthly payment can be reduced by about 88 yuan after the market quotation rate for loans with a period of more than 5 years drops by 15 basis points.
Zhang Yuewen, researcher at the Institute of Finance, Chinese Academy of Social Sciences: The decline in quoted interest rates (in the loan market) will obviously help reduce the total amount of interest that needs to be paid on housing loans each year, and will help the stable and healthy development of our country's housing market.
source: CCTV news client