China’s one-year loan prime rate, a market-based benchmark lending rate, stood at 3% on Monday, unchanged from the previous month.

The National Interbank Funding Center announced that the five-year loan prime rate, which many lenders use as a reference for mortgage rates, remained unchanged from the previous reading of 3.5%.

The loan prime rates reflect the level of financing costs for households and businesses, as lower interest rates ease the burden on borrowers, leading to more investment and consumption, according to German news agency dpa.

Interest rates on newly issued loans in China have remained relatively low. Relevant data showed that the weighted average interest rate on new corporate loans in June stood at about 3%, about 20 basis points lower than the same month last year.

Meanwhile, the weighted average interest rate on new personal housing loans was 3.1%, essentially unchanged from the same period last year.

According to this year’s government work report, China will maintain a more proactive fiscal policy and a moderately accommodative monetary policy in 2026.

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