BEIJING -- China's loan prime rate (LPR), a market-based benchmark lending rate, saw its second decline this year on Monday.

The one-year LPR came in at 3.45 percent on Monday, down from the previous reading of 3.55 percent, according to the National Interbank Funding Center. The over-five-year LPR, on which lenders base their mortgage rates, remained unchanged at 4.2 percent.

In June, the LPR went down 10 basis points in both one-year and five-year terms.

Commenting on the latest LPR decline, analysts said the lower rate will help reduce financing costs and improve credit demand, further bolstering the consumption and investment momentum.

The People's Bank of China, the country's central bank, cut several policy rates last week to shore up economic recovery. The interest rate of a one-year medium-term lending facility was reduced from 2.65 percent to 2.5 percent, and that of seven-day reverse repos fell from 1.9 percent to 1.8 percent.

The overnight, seven-day and one-month interest rates on the central bank's standing lending facility were all lowered by 10 basis points to 2.65 percent, 2.8 percent and 3.15 percent, respectively