The industry generally expects: there is still room and possibility for a further reduction in LPR within the year.

On July 21, the new LPR was released, staying unchanged for the second consecutive month. Wen Bin, Chief Economist of Minsheng Bank, predicts that there is a higher probability of another reserve requirement ratio cut and interest rate cut by the end of the third quarter or fourth quarter, at which time the LPR is expected to follow suit and be lowered to support the stable credit process. Considering the continued pressure on net interest margins for banks, efforts will also be made to reduce the overall social financing costs and focus more on reducing non-interest costs to facilitate interest rate transmission. Wang Qing, Chief Macro Analyst at East Money, predicts that there will still be significant uncertainties in the external environment in the second half of the year, leaving room for policy interest rates and LPR quotes to be lowered. It is expected that the central bank will continue to cut interest rates in the second half of the year, leading to a downward adjustment in the LPR quotes for two different terms.