On October 20, 2025, the People's Bank of China authorized the National Interbank Funding Center to release a new version of the LPR quotation: the 1-year variety report is 3.0%, compared to 3.0% last month; Varieties with a maturity of over 5 years are reported at 3.5%, compared to 3.5% last month. Wang Qing, Chief Macro Analyst of Dongfang Jincheng, analyzed that the LPR quotes for the two maturity varieties in October remained unchanged, which is in line with market expectations. Since October, the policy interest rate, namely the central bank's 7-day reverse repo rate, has remained stable, which means that the pricing basis for the LPR quotation for that month has not changed, indicating to a large extent that the LPR quotation for October will remain unchanged. In addition, with the acceleration of export growth and the strengthening of fiscal policy at the beginning of the year, the central bank implemented interest rate cuts and reserve requirement ratio cuts in May. Wang Qing believes that since the third quarter, the overall monetary policy has been in an observation period, which is the fundamental reason for the recent stability of LPR quotes. Looking ahead, is there any room for a downward adjustment in LPR pricing? Wang Qing believes that there is room for a downward adjustment in policy interest rates and LPR quotes before the end of the year, as we vigorously boost domestic demand and take effective measures to consolidate the stabilizing trend of the real estate market. It is worth noting that the Federal Reserve resumed interest rate cuts in September and may continue to do so, further weakening the constraints of external factors on implementing a moderately loose monetary policy domestically. Liang Weichao, Chief Fixed Income Analyst at China Post Securities Research Institute, pointed out that the monetary easing window may open along with it. After the broad fiscal policy enters the window of force, the overall monetary policy easing may be implemented accordingly. Both before and after the important meeting in October are suitable time windows for the implementation of monetary easing. The postponement of monetary easing due to the demand for cooling down is no longer a limitation, and the sub sectors of non manufacturing employees also experienced a certain degree of decline in September. Both September last year and May this year correspond to the landing time of reserve requirement ratio cuts and interest rate cuts. Wang Qing predicts that the central bank may implement a new round of interest rate cuts and reserve requirement ratio cuts before the end of the year, which will drive down the LPR quotes of two maturity varieties. This will lead to a greater decline in loan interest rates for enterprises and residents, stimulate endogenous financing demand, and be an important driving force for promoting consumption and expanding investment in the fourth quarter, effectively hedging against the slowdown in external demand. At present, the price level is relatively low, and there is ample room for monetary policy to be moderately loose, including interest rate cuts. In addition, further efforts are needed to stabilize the real estate market policy in the future. Wang Qing believes that in the fourth quarter, the regulatory authorities may push for a more significant reduction in residential mortgage interest rates by separately guiding the downward trend of LPR quotes for 5-year and above terms. This is a key move at the current stage to alleviate the problem of high housing loan interest rates for actual residents, stimulate market demand for home purchases, and reverse expectations in the real estate market. According to data released by the National Bureau of Statistics, the year-on-year decline in sales prices of residential properties in various tier cities continued to narrow in September. The research report of Linping Residential Big Data Research Institute pointed out that the year-on-year decline in various tier cities continues to narrow, which also sends a certain signal of stabilization, but the adjustment pace has not yet ended. The strong wait-and-see sentiment and significant inventory pressure persist, and the recovery of market confidence will take some time. (New Society)