Wen Bin: The June LPR quotation continues to 'stand still', and there is still some room for further downward adjustment in the future.

On June 20, Jinshi Data reported that Wen Bin, chief economist of Minsheng Bank, said that the reason for the unchanged LPR quotation in June was mainly due to: first, the MLF interest rate remained unchanged in June, and the pricing basis of LPR quotation did not change. Second, the net interest margin of commercial banks is still narrowing, and there is no short-term downward space for LPR quotation. Third, some loan interest rates are already low, and the unchanged LPR quotation is also aimed at preventing empty rotation and improving efficiency. Wen Bin expects that in the short term, policy interest rates will remain stable, but in order to reduce financing costs and maintain the stability of bank net interest margins, deposit interest rates still need to be further lowered, and may be implemented as early as mid-year to the third quarter, thereby opening up certain downward space for subsequent LPR quotations. In addition, considering internal and external factors, the conditions for implementing policy interest rate cuts are gradually accumulating, and the window is expected to open in the third quarter.