(MENAFN) On Monday, China's one-year loan prime rate (LPR), a key benchmark lending rate determined by market forces, was reported at 3.45 percent, maintaining parity with the previous month's figure. Similarly, the LPR for over-five-year loans, which influences many lenders' mortgage rates, also held steady at 3.95 percent, as per data from the National Interbank Funding Center.

This stability follows a notable adjustment in February, when China reduced the over-five-year LPR by 25 basis points to 3.95 percent, marking one of the largest decreases in recent years. However, the one-year rate remained unchanged during that period.

The decision to maintain the LPR aligns with China's efforts to support credit and property markets, aiming to alleviate financial burdens on both businesses and individuals while fostering a steady economic rebound. A lower LPR typically translates into reduced borrowing costs, which can stimulate economic activity and encourage investment.

The monthly LPR data serves as a crucial pricing reference for banks, derived from rates established in the central bank's open market operations, particularly the medium-term lending facility rate. This mechanism ensures that lending rates reflect prevailing market conditions and monetary policy objectives, facilitating efficient allocation of credit and liquidity in the financial system. 

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