Expert: If deposit interest rates and policy rates further decrease next year, LPR is expected to remain stable with a slight decline.

Dong Ximiao, chief researcher at Zhaolian, stated that as market interest rates continue to decline, the marginal effect of interest rate cuts is also decreasing, and interest rate cuts are not the key factor for stabilizing growth and boosting consumption at present. Dong Ximiao judged that if deposit and policy interest rates further decrease next year, the Loan Prime Rate (LPR) is expected to remain stable with a possibility of decreasing. The central bank will also pay more attention to utilizing structural monetary policy tools to guide more financial resources into areas such as technological innovation, green development, and boosting consumption. There is still room for implementing reserve requirement ratio cuts and interest rate cuts in 2026, with a higher probability of reserve requirement ratio cuts than interest rate cuts.