BEIJING (XINHUA) – China’s one-year loan prime rate (LPR), a market-based benchmark lending rate, came in at 3.85 per cent yesterday, unchanged from the previous month.
The over-five-year LPR, on which many lenders base their mortgage rates, also remained unchanged from the previous reading of 4.65 per cent, according to the National Interbank Funding Center (NIFC). Previous data showed that the lending rates have remained unchanged for a year since April 2020.
China’s central bank has reiterated that it will prioritise stability in its monetary policy and avoid making sudden shifts in 2021.
Based on bank quotes calculated by adding a few basis points to the interest rate of open market operations (mainly referring to the medium-term lending facility rate), the LPR is calculated by the NIFC to serve as a pricing reference for bank lending. The LPR currently consists of rates with two maturities – one year and over five years.
The quoting banks submit their figures before 9am on the 20th day of every month. The NIFC calculates and releases the LPR at 9.30am on the same day or on the next working day.