"Double reduction in deposits and loans activates the market: reducing the monthly burden of mortgages and easing interest rate pressure."

On May 20th, following the downgrade of the LPR, Beijing, Shanghai, and other places adjusted their mortgage rates accordingly, mostly by a decrease of 10 basis points. At the same time, the six major banks announced a reduction in the RMB deposit benchmark interest rate starting from May 20th, with the highest decrease being 25 basis points. According to calculations, this reduction in mortgage rates can reduce the monthly payment for a 30-year, million yuan mortgage by about 54 yuan, saving nearly 20,000 yuan in total. Industry insiders say that lowering mortgage rates can further reduce the cost of mortgages, helping to stimulate housing consumption demand. The reduction in deposit rates is even greater, further protecting the net interest margin of banks.