BEIJING, July 21. /TASS/. The People's Bank of China has left the rate for the first-class borrowers (LPR, loan prime rate) on one-year loans unchanged at 3% for the coming month, it said on its website.

The rate for five-year loans also remained flat at 3.5%. A decrease in the LPR, adjusted on the 20th of each month, changes the cost of loans for companies and consumers. This is a tool to stimulate market activity and the development of the national economy.

The LPR affects loan repayments. Last year, the annual rate was lowered twice: in July (to 3.35%) and in October (3.1%), this year only once (in May, a decrease of 0.1 percentage point).

The interest on five-year debt, in particular, determines the cost of mortgages. In 2024, it changed three times: in February (up to 3.95%), July (3.85%) and October (3.6%), in 2025 - once (in May, a decrease of 0.1 percentage point).

The LPR regulatory mechanism in China was changed in August 2019. It is determined monthly by the All-China Interbank Lending Center after 18 key commercial banks in the country provide it with their estimated interest rates for the coming month. First-class borrowers are enterprises with a stable financial condition and a high rating.