The interest rate of LPR includes 1 year and more than 5 years, and the loan term is marked with "1y" and "5y" respectively. "1y" LPR refers to the lpr interest rate for loans with a loan term of 5 years or less, and "5y" lpr refers to the lpr interest rate for loans with a loan term of more than 5 years. Generally, the five-year lpr will be higher than 1 year lpr. In addition, "Y" is the abbreviation of the English word "year".

The latter+or-means 0.3% increase or decrease. According to the LPR of more than five years on February 20, 20 19, a decrease of 0.3% is 4.5% and an increase of 5. 1%.

The best lending rate (LPR) is the basic lending reference rate calculated and published by the National Interbank Funding Center authorized by the People's Bank of China, and quoted by representative quotation banks in the form of open market operating rate (mainly referring to the medium-term lending convenience rate) according to the bank's lending rate to the best customers. All financial institutions should mainly refer to the loan pricing of LPR. At present, LPR includes 1 year and more than 5 years. LPR has a high degree of marketization, which can fully reflect the supply and demand of funds in the credit market. Using LPR for loan pricing can promote the marketization of loan interest rate and improve the transmission efficiency from market interest rate to credit interest rate.

At present, the formation of lpr is determined by medium-term loan facility (MLF), long-term loan (housing loan) and quotation bank, and the quotation frequency is changed from daily quotation to monthly quotation, thus forming the formation system of lpr. The formulation of this system is a guiding process, only the loan interest rate is reformed, but the deposit interest rate is not, which shows that it is to guide funds, with lower cost, which will be more conducive to corporate loans.

Which is better, LPR or fixed interest rate?

After choosing a fixed interest rate, your mortgage interest rate will remain the same as the current interest rate and will not be affected by changes in LPR. If you choose LPR, your future mortgage interest rate will change with the change of LPR, which will affect the monthly payment. When LPR decreases, the repayment amount will decrease, but if LPR increases, the repayment amount will also increase.

The central bank previously explained that the two conversion methods have their own advantages, and the specific choice depends on their own judgment, especially the judgment of the future interest rate trend. If we think that LPR will decline in the future, it will be better to refer to LPR pricing instead; If you think LPR may rise in the future, it will be beneficial to switch to a fixed interest rate.