LPR Remains Stable for Sixth Straight Month Despite Q2 Rate Cut Expectations

Published: Apr 21, 2025 13:17

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The LPR has remained stable for six consecutive months, with expectations of an interest rate cut in Q2 still strong. Amid discussions on whether to cut or not, the latest Loan Prime Rate (LPR) was released as scheduled, with both tenors remaining unchanged in April, dashing the expectations of some market participants for a rate cut. Industry insiders noted that although several banks have recently lowered deposit rates intensively, creating some room for a downward adjustment in the LPR, the current pricing "anchor" of the LPR remains stable, and internal and external factors such as interest rate spreads and exchange rates still persist, making the LPR's stability in line with expectations. Looking ahead, a policy interest rate cut in Q2 is expected to be implemented, which will then drive the LPR downward.

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