The quotation for LPR in April is released! Both 1-year and 5-year periods remain unchanged

Source: Wall Street News

The 1-year and 5-year LPR remained unchanged for the sixth consecutive month.

On Monday, April 21, the loan market quotation rate (LPR) on April 20, 2025 was: the 1-year LPR was 3.1%, and the LPR for more than 5 years was 3.6%, both of which remained the previous value.



Since November 2024, the two-term LPR products have been "stand-hold" for six consecutive months. The 2025 "Government Work Report" clearly states that "implement a moderately loose monetary policy", and also proposes "timely cuts the reserve requirement ratio and interest rate to maintain abundant liquidity."

Previously, Wang Qing, chief macro analyst of Oriental Financial Cheng, said in an interview with the media that driven by the continuation effect of last year's incremental policies, the macro economy has maintained strong growth momentum since the beginning of the year, and the growth rate of consumption and investment has accelerated, and the necessity and urgency of interest rate cuts are not high.

Looking ahead, according to Securities Daily, Wang Qing believes that based on the current changes in the real estate market, external economic and trade environment, and overall price trends, it is expected that the window for interest rate cuts in the second quarter may open, which will guide LPR quotations to follow up and down. In addition, this year's LPR quotation may be lowered separately while the policy interest rate remains stable, or the LPR quotation may be lowered higher than the policy interest rate cut.

Wen Bin, chief economist of Minsheng Bank, believes that considering the pressure on banks' liabilities, as well as the need to strengthen monetary and fiscal coordination and increase support for the real economy, it is still necessary to implement the reserve requirement ratio cut.

Regarding interest rate cuts, Wen Bin believes that the central bank proposed to reduce the interest rates of structural monetary policy tools. In the future, in order to strengthen the incentive effect of structural monetary policy tools and reduce the liability costs of the banking system, interest rates have a large room for adjustment. It is estimated that the reduction in the next stage will be about 25 basis points.

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