Dong Ximiao, chief researcher at CMB, said that as market interest rates continue to drop, the marginal effect of interest rate cuts is also declining. Interest rate cuts are not currently a key factor in steady growth and consumption promotion. Dong Ximiao judged that if deposit interest rates and policy interest rates drop further next year, LPR is expected to decline steadily. The central bank will also pay more attention to using the role of structural monetary policy as a tool to guide more financial resources to fields such as technological innovation, green development, and boosting consumption. There is still room for interest rate cuts to be implemented in 2026; the probability of downgrading is greater than cutting interest rates.

Dong Ximiao, chief researcher at CMB, said that as market interest rates continue to drop, the marginal effect of interest rate cuts is also declining. Interest rate cuts are not currently a key factor in steady growth and consumption promotion. Dong Ximiao judged that if deposit interest rates and policy interest rates drop further next year, LPR is expected to decline steadily. The central bank will also pay more attention to using the role of structural monetary policy as a tool to guide more financial resources to fields such as technological innovation, green development, and boosting consumption. There is still room for interest rate cuts to be implemented in 2026; the probability of downgrading is greater than cutting interest rates.