On January 19, the people’s Bank of China issued an announcement to adjust the list and release time of quotation banks of loan market quotation interest rate (LPR), which will be implemented from January 20, 2022.
This means that on January 20, LPR will be released for the first time at 9:15. Driven by the expectation that the medium-term lending facility (MLF) interest rate will be reduced by 10 basis points on the 17th, there is much concern about whether the LPR will be reduced today
screenshot from the official website of the people’s Bank of China
LPR release time is adjusted to 9:15 on the 20th of each month
On the evening of the 19th, the national interbank lending center was authorized to release the quotation Bank of the loan market quotation interest rate and the announcement on the adjustment of the release time:
In order to strengthen expectation management and promote better connection between LPR release time and financial market operation time, LPR release time is adjusted from 9:30 a.m. on the 20th of each month (postponed in case of holidays) to 9:15 a.m.
LPR quotation line list adjustment, Bank Of Xi’An Co.Ltd(600928) and China Citic Bank Corporation Limited(601998) are not selected
At the same time, according to the requirements of announcement [2019] No. 15 of the people’s Bank of China, in order to improve the quotation quality of the quotation Bank of the loan market quotation interest rate (LPR), the people’s Bank of China guided the interest rate self-discipline mechanism to assess the LPR quotation bank inside and outside the market, and adjusted the LPR quotation bank according to the assessment results.
The list of adjusted LPR quotation lines is as follows:
China Industrial And Commercial Bank Of China Limited(601398) , China Agricultural Bank Of China Limited(601288) , Bank Of China Limited(601988) , China China Construction Bank Corporation(601939) , Bank Of Communications Co.Ltd(601328) , China postal savings bank, China Merchants Bank Co.Ltd(600036) , Industrial Bank Co.Ltd(601166) , Shanghai Pudong Development Bank, China China Minsheng Banking Corp.Ltd(600016) , Bank Of Nanjing Co.Ltd(601009) , Bank of Taizhou, Shanghai Rural Commercial Bank, Guangdong Shunde Rural Commercial Bank, Shenzhen Qianhai Weizhong bank, Zhejiang e-commerce bank, Citibank (China) Standard Chartered Bank (China).
According to media reports such as the securities times, compared with the previous list of new quotation banks, postal savings bank of China, Bank Of Nanjing Co.Ltd(601009) were newly shortlisted, Bank Of Xi’An Co.Ltd(600928) and China Citic Bank Corporation Limited(601998) were not selected.
whether LPR will cut interest rates has attracted much attention
On January 17, the people’s Bank of China launched a 700 billion yuan one-year medium-term lending facility (MLF) operation and a 100 billion yuan seven-day open market reverse repurchase operation. The bid winning interest rate was cut by 10 basis points higher than expected, which triggered the market’s expectation of LPR interest rate reduction.
At the press conference of the State Council Information Office held on January 18, Liu Guoqiang, vice president of the people’s Bank of China, said that he would “open the monetary policy toolbox a little bigger”, and proposed that “the plan of the year lies in spring, so we should hurry up and operate forward”. The market has paid high attention to the above new formulation.
In addition, sun Guofeng, director of the Monetary Policy Department of the people’s Bank of China, said at the press conference that LPR would timely and fully reflect the changes of market interest rates, guide the decline of enterprise loan interest rates, and effectively promote the reduction of enterprise comprehensive financing costs.
Zhongtai Securities Co.Ltd(600918) chief economist Li Xunlei told Zhongxin finance and economics that among various monetary policy tools, reducing the quoted interest rate (LPR) of the loan market may be used more frequently. After the reduction of MLF, the next step is the quoted interest rate (LPR) in the loan market. China’s practice is usually “small step and rapid reduction” – small step and repeated reduction.
