China's 1-year LPR remains unchanged, while the LPR for terms of over 5 years decreases by 25 basis points

According to a report by Jins, the People's Bank of China authorized the National Interbank Funding Center to announce that the 1-year LPR is 3.45%, unchanged; and the LPR for over 5 years is 3.95%, down by 25 basis points from before. Mingming, Chief Economist at CITIC Securities, stated that there is still room for MLF rate cuts and "rate cuts" in deposit rates. In order to further guide loan interest rates downward, it is essential for policy rate reductions to continue leading the way. The reduction of MLF rates may need to wait until external conditions are more favorable, while there is greater initiative and flexibility in lowering deposit rates.