This interest rate refers to the one-year variety of loan market quoted interest rates.

The interest rate of 1-year LPR reflects the current level of bank funding interest rates and market liquidity. It is usually used for short-term consumer loans and personal operating loans.

LPR is the interest rate announced by the People's Bank of China. It is the loan interest rate announced by commercial banks and is also an important part of the market-oriented reform of China's banking industry.