China: PBoC Interest Rate - Loan Prime Rate 1Y

Macro

2026-07-01

Description

China's 1-Year Loan Prime Rate (LPR 1Y) is a benchmark interest rate published by the People's Bank of China (PBoC) and serves as a reference for short-term loan rates across the country.

The LPR 1Y is determined by the quotations from 18 designated banks, which base their rates on the Medium-term Lending Facility (MLF) rate plus a spread that considers funding costs and risk factors, enhancing the transmission of market rates to loan rates.

This rate is published on the 20th of each month, reflecting the average rate for short-term loans to prime customers.

Published by
People's Bank of China (Choice)
Frequency
Monthly
Next Update
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AI Data Insight

In Q2 2026 (June), China's 1-year Loan Prime Rate (LPR) was recorded at 3.0%, completely flat compared to the previous value, meeting market expectations. Constrained by the narrowing net interest margins of commercial banks and stable policy rates, reporting banks lack the motivation to lower rates. In the short term, the LPR is expected to maintain the status quo, as the PBOC shifts towards precise structural liquidity management.

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AI Data Insight

In Q2 2026 (June), China's 1-year Loan Prime Rate (LPR) was recorded at 3.0%, completely flat compared to the previous value, meeting market expectations. Constrained by the narrowing net interest margins of commercial banks and stable policy rates, reporting banks lack the motivation to lower rates. In the short term, the LPR is expected to maintain the status quo, as the PBOC shifts towards precise structural liquidity management.

Dive in →

You May Also Like

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Description

China's 1-Year Loan Prime Rate (LPR 1Y) is a benchmark interest rate published by the People's Bank of China (PBoC) and serves as a reference for short-term loan rates across the country.

The LPR 1Y is determined by the quotations from 18 designated banks, which base their rates on the Medium-term Lending Facility (MLF) rate plus a spread that considers funding costs and risk factors, enhancing the transmission of market rates to loan rates.

This rate is published on the 20th of each month, reflecting the average rate for short-term loans to prime customers.

Published by
People's Bank of China (Choice)
Frequency
Monthly
Next Update
Hashtags