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On February 20, the central bank released the first LPR quotation of the Year of the Bull.
The People’s Bank of China authorized the National Interbank Funding Center to announce that on February 20, 2021, the market quoted interest rate (LPR) for loans is 3.85% for 1-year LPR and 4.65% for 5-year or longer LPR.
According to statistics, the LPR interest rate has remained unchanged for 10 months. The LPR interest rate continues to remain unchanged, and the market has already expected it.
On February 18, the central bank renewed the maturity of 200 billion yuan of medium-term loan facility (MLF) operations, and the interest rate remained at 2.95%.
The central bank pointed out in the latest monetary policy implementation report that the next stage of a sound monetary policy should be flexible, precise, reasonable and appropriate, adhere to a stable word, not make a sharp turn, grasp the time and effectiveness of policies, and handle the relationship between economic recovery and risk prevention. , To maintain the sustainability of the normal monetary policy space.
Although LPR has not changed for many consecutive months, the rising trend of mortgage interest rates continues. In February 2021, the 52-city mainstream first-home loan interest rate monitored by the Shell Research Institute was 5.32%, and the second set of interest rates were 5.60%, both increased by 3 basis points from the previous month, and the increase was larger than the previous two months. The continued rise in housing loan interest rates is mainly due to the local government’s regulation and control to curb overheating of the real estate market.
Xu Xiaole, chief market analyst at Shell Research Institute, said that mortgage interest rates continued to rise in February, and the lending cycle was slightly shortened but still at a high level. Short-term mortgage interest rates may still rise in the future.
LPR and MLF interest rates have remained unchanged, indicating that my country’s current monetary policy continues to maintain a steady and moderate degree and does not make a sharp turn against the backdrop of an improvement in the epidemic situation and continued economic recovery.