According to Dongfang Jincheng Research, the LPR prices for the two varieties remained unchanged in September and were basically in line with market expectations. LPR prices have remained stable since the beginning of the year. The reason behind this is that the GDP growth rate reached 4.7% in the first half of the year, falling within the target range of 4.5% to 5.0% for the whole year, and the new productivity sector represented by high-tech manufacturing accelerated development. This means that although domestic investment and consumption momentum has weakened since the second quarter and economic growth momentum has declined, macroeconomic policies have remained strong and monetary policy continues to be under observation. This is the root cause of the unadjusted LPR quotes in September. We judge that the central bank may implement policy interest rate cuts in the later stages, which will drive LPR quotes to follow up and lower. The July 30 Politburo meeting emphasized that next, it is necessary to “give full play to the effectiveness of various inventory policies, plan and introduce pragmatic and effective incremental policies in a timely manner, and increase countercyclical adjustment efforts,” and called for “comprehensive application and timely adjustment of monetary policy tools.” Taking into account the economic and financial situation and price trends, it is not ruled out that a new round of incremental policies will be introduced next

According to Dongfang Jincheng Research, the LPR prices for the two varieties remained unchanged in September and were basically in line with market expectations. LPR prices have remained stable since the beginning of the year. The reason behind this is that the GDP growth rate reached 4.7% in the first half of the year, falling within the target range of 4.5% to 5.0% for the whole year, and the new productivity sector represented by high-tech manufacturing accelerated development. This means that although domestic investment and consumption momentum has weakened since the second quarter and economic growth momentum has declined, macroeconomic policies have remained strong and monetary policy continues to be under observation. This is the root cause of the unadjusted LPR quotes in September. We judge that the central bank may implement policy interest rate cuts in the later stages, which will drive LPR quotes to follow up and lower. The July 30 Politburo meeting emphasized that next, it is necessary to “give full play to the effectiveness of various inventory policies, plan and introduce pragmatic and effective incremental policies in a timely manner, and increase countercyclical adjustment efforts,” and called for “comprehensive application and timely adjustment of monetary policy tools.” Taking into account the economic and financial situation and price trends, it is not ruled out that a new round of incremental policies will be introduced next