According to Jinshi Data, with the recent interest rate cuts, the new LPR (loan market benchmark rate) to be released in October is expected to be lowered. Wang Qing, chief macro analyst at Orient Securities, said that the LPR of the two maturity varieties is expected to be lowered by 20 basis points in October.

First, the central bank lowered the policy rate, the 7-day reverse repurchase rate, by 20 basis points. As the pricing basis for the current LPR quotation, the reduction in the policy rate will directly lead to a follow-up adjustment of the LPR.

With the introduction of a package of incremental policies, macroeconomic policies have been fully implemented in the direction of stabilizing growth. The reduction in LPR is in line with the current general direction of macroeconomic policies and is a key link in transmitting the central bank's "forceful interest rate cuts" to the real economy.