LPR fell for the first time this year, with the first home loan interest rate in Shanghai dropping to 3.05%.

On May 20th, the People's Bank of China authorized the National Interbank Funding Center to announce that the loan market quoted interest rates were: 1-year LPR at 3.00%, and 5-year LPR at 3.50%, both lowered by 10 basis points compared to the previous period. After today's LPR reduction, the first-home commercial loan interest rates in Shanghai have already decreased to 3.05%. Some industry insiders have analyzed that this move cannot be considered a contra-cyclical adjustment. Compared to other regions, Guangzhou's mortgage rates are relatively low. If mortgage rates do not increase with the decrease in LPR, the home purchase interest rates will be below 3% after the LPR reduction. The increase in mortgage rates is to reduce the impact of future LPR reductions on banks. It is predicted that on May 20th, the market will continue to forecast a further decrease in LPR.