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LPR (Loan Prime Rate) Loan Prime Rate, also known as loan market quotation, is a basic loan reference rate calculated and published by representative quotation banks in the form of open market operating rate plus points according to the bank's loan interest rate for the best quality customers, and is formulated by the National Interbank Funding Center authorized by the People's Bank of China. Other loan interest rates can be formed by adding or subtracting points on this basis.

LPR is calculated by 65,438+08 quotation banks on the 20th of each month in steps of 0.05 percentage points. The National Inter-bank Lending Center calculates LPR with the arithmetic average after excluding the highest and lowest quotations, and rounds it to the nearest integer multiple of 0.05%. At 9: 30 am that day, LPR will be postponed in case of holidays. The current LPR includes 1 year and.

Two varieties with a maturity of more than 5 years.

[Note] The National Interbank Funding Center is directly affiliated to the People's Bank of China. It mainly provides inter-bank foreign exchange trading, RMB interbank lending and bond trading systems, organizes market transactions to handle the settlement and delivery of foreign exchange transactions, and provides clearing tips for RMB interbank lending and bond trading; Provide online bill quotation system; Providing information services in the foreign exchange market, bond market and money market; Other business institutions approved by the People's Bank of China.

Latest quotation: The People's Bank of China authorized the National Interbank Funding Center to announce that the loan market quotation (LPR) on February 2 1 day was: 1 year, 3.7%, and 5 years or more, 4.6%.

So where is the relationship between LPR and us ordinary people mainly reflected? There are two main aspects. First, it will affect mortgage loans, and second,

Affect stock trading

About mortgage. On August 25th, 2020, 12, five state-owned banks, namely ICBC, CCB, ABC, BOC and Postal Savings Bank, issued announcements at the same time. From August 25th, individual housing loans within the range of batch conversion will be uniformly adjusted to LPR (loan market quotation) pricing method according to relevant rules. The mortgage interest rate of Chinese banks is formed by adding some points on the basis of LPR of more than five years. First of all, understand a noun, the basic point. Used in finance, the measurement unit of interest rate changes of bonds and bills is 1% 1 percentage point, that is, 0.0 1% of 100 basis point equals 1 percentage point 100%, that is/kloc. The latest LPR of more than 5 years is 4.6%, and the latest LPR is 4.65%, showing a downward trend. But banks in different places have different points. At present, the first set in Shenzhen is 30 points, which is 4.9%( 4.6%+0.3%=4.9%). Generally speaking, interest rate reduction is beneficial to the real estate market, but it should be noted that the mortgage interest rate will drop immediately when LPR is lowered, and the adjustment of mortgage interest rate is also necessary. There is a repricing cycle, the shortest is one year, that is, the loan interest rate will be adjusted once a year.

About stock trading. Lpr = mlf (medium-$ TERM lending facility)+1arithmetic average of 8 banks' bonus points. Among them, MLF is decided by the central bank. When MLF drops, the money supply in the market will increase, and the extra money will go to the high-yield stock market. Therefore, if LPR falls, then the stock market is still good.