In this undated photo, a Chinese clerk counts renminbi yuan banknotes in Nantong, East China's Jiangsu province. (PHOTO / IC VIA CHINADAILY.COM.CN)

BEIJING - China's one-year loan prime rate (LPR), a market-based benchmark lending rate, came in at 3.7 percent Monday, unchanged from the previous month.

Based on bank quotes calculated by adding a few basis points to the interest rate of open market operations, the loan prime rate is calculated by the National Interbank Funding Center to serve as a pricing reference for bank lending

The over-five-year LPR, on which many lenders base their mortgage rates, also remained unchanged from the previous reading of 4.6 percent, according to the National Interbank Funding Center (NIFC).

ALSO READ: China strengthens lending support for private enterprises

It is reasonable for LPR to remain unchanged this month as China's central bank has been conducting medium-term lending facilities and reverse repos to maintain the adequate liquidity of the market, demonstrating the country's prudent and neutral monetary policy, said Wen Bin, chief analyst at China Minsheng Bank.

Based on bank quotes calculated by adding a few basis points to the interest rate of open market operations (mainly referring to the medium-term lending facility rate), the LPR is calculated by the NIFC to serve as a pricing reference for bank lending. The LPR currently consists of rates with two maturities - one year and over five years.

READ MORE: China cuts benchmark lending rate to shore up growth

The quoting banks submit their figures before 9 am on the 20th day of every month. The NIFC calculates and releases the LPR at 9:30 am on the same day or on the next working day.