China cuts benchmark mortgage interest rate amid property crisis

World Economy

China’s central bank cut its benchmark mortgage interest rate Tuesday for the first time in eight months to shore up the real estate market amid a prolonged property crisis in the world’s second-largest economy.

The People’s Bank of China said it had lowered the five-year loan prime rate by 0.25 percentage point to 3.95 percent, the first reduction since June last year. The bank left unchanged the one-year loan prime rate, which serves as the benchmark lending rate, at 3.45 percent.

The mortgage rate cut followed a monetary easing move implemented on Feb. 5 to slash the amount of cash that ban...

Kyodo News

Kyodo News