China's one-year loan prime rate (LPR), a market-based benchmark lending rate, came in at 3.1 percent Wednesday, 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 3.6 percent, according to the National Interbank Funding Center.
The LPR is the most preferential lending rate offered by a commercial bank to its prime clients, and serves as a reference for other lending rates across the economy.
The loan prime rate is calculated by the National Interbank Funding Center, based on quotes submitted by 20 commercial banks. The unchanged rate suggests confidence in market stability on the part of lenders.
The LPR underwent a major reform in 2019, aiming to enhance the role of the market in LPR quoting, improve the efficiency of interest rate transmission, and lower financing costs for the real economy.
China's loan prime rates remain unchanged
