The improved economic data supports the temporary stabilization of LPR, and the reduction of RRR and interest rates during the policy game period remains the focus

On April 21, the new loan market quotation rate (LPR) was announced, and it has been "standing still" for 6 consecutive months. The policy interest rate remains unchanged, which is the main reason why the LPR quotation remained unchanged in April. "Although the tariff impact was implemented at the beginning of the month, the total interest rate reduction tool has not yet been effective." Mingming, chief economist of CITIC Securities, analyzed that after the 1-year and 5-year LPR were reduced by 25bps respectively in October last year, the quotation rate has been flat for 6 consecutive months, and the reverse repurchase rate has not been reduced. In addition, according to market analysis, the economic data in the first quarter exceeded expectations, and the need for the total amount of wide monetary tools to be quickly implemented to stabilize market expectations is not high. Dong Ximiao, chief researcher of Zhaolian, believes that at present, whether it is newly issued corporate loans or housing loans, interest rates have dropped significantly compared with the previous year and are at a historical low. Therefore, the possibility of a decline in LPR in the short term is reduced, and the necessity of a reduction in the reserve ratio is greater. Mingming also pointed out that the liquidity gap in April was smaller, the funding level was more relaxed than in March, the pressure on the debt side of commercial banks was relatively controllable, and the urgency of a reverse repurchase interest rate cut was not great.