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Editor of Every Economic Report: Ma Ziqing

| Wednesday, August 21, 2024 |

NO.1August LPR quotation released: 1-year and 5-year interest rates remain unchanged

On August 20, the central bank's website released an announcement showing that the August loan market benchmark rate (LPR) was released, with the 1-year LPR at 3.35%, compared to 3.35% last month; the 5-year LPR was 3.85%, compared to 3.85% last month. In addition, the central bank conducted a 7-day reverse repurchase operation of 149.1 billion yuan on the same day, with the winning rate at 1.70%, the same as before.

Wang Qing, chief macro analyst at Orient Securities, believes that "there is still room for a slight downward adjustment in the LPR quotation this year. Taking into account the economic situation and price levels, the central bank may further lower the main policy interest rate, that is, the 7-day reverse repurchase rate, in the fourth quarter. The reduction is estimated to be 10 to 20 basis points, which will guide the LPR quotation to follow up the downward adjustment."

Comments:Last month, the LPR quotations of the two maturity varieties were just lowered by 10 basis points respectively. In addition, the main policy interest rate of the central bank remained stable before this quotation, so the unchanged LPR quotations of the two maturity varieties in August were in line with the general market expectations. At the same time, at this stage, the overall macroeconomic situation has maintained a positive recovery momentum, various risks have been effectively controlled, and 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 up with a continuous reduction.

NO.2The Supreme People's Court and the Supreme People's Procuratorate issued a judicial interpretation to clarify the standards for identifying crimes of "self-laundering" and "money laundering by others"