[MLF interest rate cut 10 basis points market participants: LPR downside probability] June 16, the people's Bank of China issued a notice saying that the medium-term lending facility (MLF) operation won the bid interest rate down 10 basis points from last month. Market participants expect that the lower bid interest rate for MLF operation in June will lead to a follow-up reduction in the loan market quotation rate (LPR). The winning interest rate of MLF operation is the pricing basis of LPR quotation. Wang Qing, chief macro analyst of Oriental Jincheng, said, "We judge that there may be an asymmetric downward adjustment between the one-year LPR quotation and the more than five-year LPR quotation, that is, the one-year LPR quotation may be reduced by 0.05 percent, and the LPR quotation over five years by 0.15 percent. This will lead to a sharp reduction in lending rates for enterprises and residents, especially for residential mortgages. "