On November 20th, the People's Bank of China authorized the National Interbank Funding Center to announce that the latest market quoted interest rates (LPR) for loans are: 3.0% for 1-year LPR and 3.5% for 5-year and above LPR, both of which are the same as the last time. Experts believe that the LPR quotes for the two maturity varieties in November remain unchanged, which is in line with market expectations. In the view of Wang Qing, Chief Macro Analyst of Dongfang Jincheng, since the announcement of the LPR quotation on October 20th, the policy interest rate (the central bank's 7-day reverse repo rate) has remained stable, which means that the pricing basis of the November LPR quotation has not changed and largely indicates that the LPR quotation will remain unchanged for the month. In addition, although major mid to long term market interest rates, including the yield to maturity of 1-year interbank certificates of deposit (AAA rating), have remained stable and slightly decreased recently, and the financing costs of commercial banks in the money market have slightly decreased, the current quoting banks lack the motivation to actively lower their LPR quotation points against the backdrop of the lowest historical net interest margin of commercial banks. Wang Qing believes that the LPR quotation has remained unchanged since June, and the fundamental reason behind it is that the macroeconomic trend has been stable and relatively strong, driven by exports exceeding expectations since the beginning of the year and the rapid development of domestic new quality productivity. The demand for countercyclical adjustment has correspondingly decreased, and monetary policy has maintained strong stability. Looking ahead to the next stage, Dong Ximiao, Chief Researcher of Zhaopin Finance, pointed out that although there is still some room for implementation of a moderately loose monetary policy in the near future, the marginal efficiency has significantly decreased. Excessive relaxation of monetary and financial conditions may also have some negative effects that need attention. Therefore, the market should lower its expectations for the next significant reduction in reserve requirement ratio and interest rates. Focusing on stabilizing the economic operation in the fourth quarter of this year and the first quarter of next year, Wang Qing believes that the policy of stabilizing growth is expected to end the observation period and enter the stage of exerting force. Wang Qing believes that after the implementation of the "two 500 billion" measures in fiscal and quasi fiscal policies, a new round of interest rate cuts and reserve requirement ratio cuts may be launched in monetary policy before the end of the year, which will drive the LPR quotes of two maturity varieties to follow suit and lower, guiding the loan interest rates of enterprises and residents to further decline, and stimulating endogenous financing demand. This is an important driving force for promoting consumption, expanding investment, and effectively hedging against the slowdown in external demand at the current stage. The current price level is low, and there is ample room for monetary policy to be moderately loose, including interest rate cuts. ”Wang Qing said. In addition, policies to stabilize the real estate market need to be further strengthened. Wang Qing expects that the regulatory authorities may push for a more significant reduction in residential mortgage interest rates by guiding the downward trend of LPR quotes for more than 5 years separately. This is a key move at the current stage to alleviate the problem of high housing loan interest rates for actual residents, stimulate market demand for home purchases, and reverse expectations in the real estate market. (New Society)