Securities Daily: LPR lowered by 10 basis points in May, still room for further decrease this year.

Wang Qing, chief macro analyst of Orient Securities, said that the current external environment still faces great uncertainty, and domestic policies to stabilize growth cannot be relaxed. It is expected that the central bank will continue to implement interest rate cuts in the second half of the year, and there is still room for the LPR of two term varieties to decrease. Wang Qing believes that the recent reduction of deposit rates by state-owned banks and the subsequent adjustment by other commercial banks will lead to an overall decrease in deposit rates by about 0.11 to 0.13 percentage points, which will basically cover the impact of the LPR reduction on the downward adjustment of various loan interest rates on the asset side of banks, stabilizing banks' net interest margin.