LPR remains unchanged for the third consecutive month, with monetary policy focusing on preventing defaults, optimizing structure, and lowering the cost of funding.

According to the comprehensive analysis within the industry, there are three main reasons for the unchanged LPR pricing in August: first, after the implementation of monetary tools such as interest rate cuts and reserve requirement reductions in May, the effectiveness observation period for overall policy tools has begun, and the pricing anchor for LPR - the 7-day reverse repurchase rate - remains stable; second, by the end of the second quarter of 2025, the net interest margin of commercial banks further decreased to 1.42%, a decrease of 0.01 percentage points from the end of the first quarter, leading to a lack of motivation for commercial banks to lower LPR pricing adjustments; third, the People's Bank of China explicitly emphasized in the "China Monetary Policy Implementation Report for the Second Quarter of 2025" the need to "implement and refine moderately loose monetary policies", indicating that the focus of future monetary policies is on implementation, with a low probability of further easing in the short term.