The urgency of an interest rate cut is not high, and the LPR has remained unchanged for ten consecutive months. Experts believe that the decrease in LPR for the year will not be significant, possibly 5-10 basis points.

"This is the result of a current balance of multiple factors," said Dong Ximiao, chief economist at Zhonglian. From the perspective of pricing, the 7-day reverse repurchase operation rate, which serves as the core anchor point of the LPR, has remained at 1.40% since May 2025 without adjustment. Dong Ximiao believes that this directly determines the lack of downward policy basis for the LPR. He also believes that there will still be pressure for narrowing net interest margins for banks in the future, limiting their space to lower LPR margins. Maintaining stable interest rates helps banks alleviate operating pressures and stabilizes credit issuance. Dong Ximiao believes that from a price perspective, the central bank is more likely to achieve the goal of promoting low comprehensive social financing costs by strengthening the implementation and supervision of interest rate policies, regulating intermediary financing costs. The decline in LPR within the year will not be significant, possibly between 5-10 basis points.