LPR has remained unchanged for four consecutive months, experts say there is still room for downward movement later this year.

LPR continuing to "stand still" meets market expectations. Wang Qing, chief macro analyst at Orient Jincheng, stated that since September, the policy rate 7-day reverse repurchase operation rate has remained stable, indicating that the pricing basis for LPR quotations in that month has not changed. Influenced by market expectations such as "anti-internal competition," recently, the yield on 1-year interbank certificates of deposit and 10-year government bond yields in the primary and long-term market have increased slightly. Against the backdrop of commercial banks' net interest margins at historically low levels, quoting banks lack the incentive to actively lower LPR add-ons. Looking ahead, industry experts believe that with the Fed resuming rate cuts, China's monetary policy operating space is expected to further expand. Dong Ximiao, chief researcher at Zhonglian, stated that the Fed recently initiated its first rate cut since December 2024, providing a looser liquidity environment for global markets. Furthermore, the Fed may continue to cut rates before the end of the year. In this trend, the pressure on the China-US interest rate spread and the pressure on the RMB exchange rate may decrease, external constraints will weaken, and provide a more favorable external environment for China's monetary policy, giving more room for adjustments.