LPR has been unchanged for 9 consecutive months. Experts predict a decrease of 5 to 10 basis points within the year.

As of now, the Loan Prime Rate (LPR) has remained unchanged for 9 consecutive months. Deng Ximiao, Chief Economist of the Minsheng Bank, believes that maintaining the LPR unchanged helps to keep the net interest margin of banks stable. Additionally, the current interest rate level is already low, so there is not a high urgency for the LPR to decrease. Moreover, from an external perspective, the current changes in the international political and economic situation are relatively favorable for China, so there is not a strong necessity to lower the LPR in the short term. "By 2026, the cost of bank liabilities will continue to decrease, coupled with measures such as the People's Bank of China lowering policy instrument rates, the long-term cost of bank funds will continue to decrease. Therefore, there is some room for banks to lower the LPR." Deng Ximiao predicts that the decline in LPR this year will be between 5 and 10 basis points.