(Yicai Global) May 20 -- The People's Bank of China kept its benchmark loan prime rate unchanged this month after the central bank cut the rate in April to increase liquidity and help revive the economy as the country bounced back from the Covid-19 pandemic.

The one-year LPR is still 3.85 percent and that for loans of five years or more is still 4.65 percent, the lender said this morning. The central bank cut the one-year rate by 20 basis points and the long-term LPR by 10 basis points last month.

PBOC introduced the LPR in 2013 and began reforming the mechanism in the second half of last year to better reflect market changes and support the real economy. The reference rate, which is checked every month, is based on the central bank's open market operations, most importantly its medium-term lending facility rates.

Editor: James Boynton