China’s Loan Prime Rate Remains Unchanged for Sixth Consecutive Month in February

China’s benchmark interest rate for the banking sector has remained unchanged in February, as the Chinese central bank keeps a lid on the policy rates for its open market operations.

The People’s Bank of China (PBOC) authorized the National Interbank Funding Center to announce that the loan prime rates (LPR) on February 20, 2023 were 3.65% for 1-year LPR and 4.3% for 5-year-plus LPR.

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