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[The LPR quotation was lowered in July, and there is no need for further reduction in the short term; currently, the pressure on bank net interest margin is still great, and the LPR quotation is limited to continue to decline in the short term; in addition, the recent market fund interest rate bottomed out and rebounded, which weakened the space for the LPR quotation to continue to decline in the short term.]

The August LPR quotation remained the same as the previous period.

On the 20th, the People's Bank of China authorized the National Interbank Funding Center to announce that the loan market benchmark rate (LPR) in August was: 1-year LPR was 3.35%, and LPR for more than 5 years was 3.85%, both the same as the previous period.

Many experts believe that the LPR quotation has been lowered in July, and there is no need to further reduce it in the short term; currently, the pressure on bank net interest margin is still great, and the LPR quotation is limited to continue to reduce in the short term; in addition, the recent market fund interest rate has bottomed out and rebounded, which has weakened the space for the LPR quotation to continue to reduce in the short term. However, looking forward, there is still room for LPR to be reduced.

Commercial banks lack motivation to cut prices

After both LPR varieties were lowered in July, the LPR remained unchanged in August, in line with market expectations.

"After the LPR quotation was lowered in July, the current focus is to guide the credit interest rates of enterprises and residents to follow suit and be lowered." Wang Qing, chief macro analyst at Orient Securities, believes that considering that the overall macro-economy is maintaining an upward momentum at this stage and various risks are effectively controlled, the monetary policy has the conditions to maintain a prudent tone. There is little need to continuously lower the policy interest rate and guide the LPR quotation to follow suit and be lowered continuously.