Citic Securities: the 5-year LPR reduction is expected to exceed 10bp

FAP, June 14 (Xinhua)-- Citic Securities Research report pointed out that the central bank announced a reduction in the reverse repo rate 10bp on June 13, and it is expected that both MLF and LPR interest rates will follow suit in June, with the five-year LPR cut by more than 10bp. The reverse repurchase rate cut may mark the opening of the policy window, which may be a bright spot in the infrastructure and real estate sectors. However, we also need to guard against the pressure of short-term devaluation of the RMB.