BEIJING, Aug. 20 (Xinhua) -- China's one-year loan prime rate (LPR), a market-based benchmark lending rate, came in at 3.85 percent Thursday, remaining unchanged from the previous month.
The over-five-year LPR, on which many lenders base their mortgage rates, also stayed unchanged at the previous reading of 4.65 percent, according to the National Interbank Funding Center (NIFC).
Based on the quotes made by quoting banks by adding a few basis points to the interest rate of open market operations (mainly referring to the rate of the medium-term lending facility, or MLF), the LPR is calculated by the NIFC, serving as the pricing reference for bank lending. Currently, the LPR consists of rates with two maturities, i.e. one year and over five years.
The quoting banks will submit their quotes before 9:00 a.m. on the 20th day of every month. The NIFC will calculate and release the LPR at 9:30 a.m. on the same day, or the next working day.
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