China's loan prime rates remain unchanged

File photo shows the headquarters of the People's Bank of China. (Xinhua/Cai Yang)

BEIJING, Feb. 21 (Xinhua) -- China's one-year loan prime rate (LPR), a market-based benchmark lending rate, came in at 3.7 percent Monday, 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 4.6 percent, according to the National Interbank Funding Center (NIFC).

In January, the over-five-year LPR was lowered by 5 basis points from the December reading of 4.65 percent.

The one-year LPR had two consecutive cuts in the previous two months. It was lowered by 5 basis points to 3.8 percent in December and was subsequently cut to 3.7 percent in January.

Analysts have said that the cuts in the LPRs will produce positive effects in expanding domestic demand, stabilizing external demands, and ensuring stable development of the property sector.

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 9 a.m. on the 20th day of every month. The NIFC calculates and releases the LPR at 9:30 a.m. on the same day or on the next working day.