China’s 5-Year Benchmark Interest Rate Sinks 15 Basis Points in May

The five-year reading for the latest round of benchmark interest rates in China has seen a 15 basis point decline.

The loan prime rates (LPR) published on 20 May were 3.7% for the one-year rate, and 4.45% for the five-year rate.

While the one-year reading was on par with April, the five-year rate of 4.45% marks a decline of 15 basis points compared to the reading of 4.6% last month.

The LPR in China is the lend­ing rate pro­vided by com­mer­cial banks to their high­est qual­ity cus­tomers, and serves as the bench­mark for rates pro­vided for other loans.

The Na­tional In­ter­bank Fund­ing Cen­ter serves as the des­ig­nated pub­lisher of the LPR, and re­leases the fig­ures at 9:30 am on the 20th of each month, af­ter first col­lect­ing quotes from the group of re­port­ing banks and cal­cu­lat­ing the av­er­age of these quotes fol­low­ing ex­clu­sion of the low­est and high­est quotes.