BEIJING, Oct 25 (Reuters) - China has launched a new benchmark lending rate, or the "loan prime rate", that guides commercial banks in setting interest rates when lending to their best customers, the country's central bank said on Friday.
The new rate would help China's benchmark interest rates market move towards a system led by market forces, the central bank said in a statement.
The loan prime rate, which currently only has a one-year tenor, was set by nine commercial banks on Friday including China's four biggest banks.
The rate will be announced on every working day on the Shanghai Interbank Offered Rate (SHIBOR) website.
(Reporting by Aileen Wang and Koh Gui Qing)