China's Mortgage Rate Stays Steady Despite Fed Rate-Cutting Cycle
China's Unyielding Mortgage Rate
Mortgage rate stability continues as China maintains its lending rates amid a shifting economy. The People's Bank of China has kept the five-year loan prime rate unchanged at 3.85%, surprising many amid calls for a boost to the crisis-hit property market. This decision comes despite the recent US Federal Reserve interest-rate cut, raising questions about China's ongoing economic strategies.
Impact on the National Economy
In light of the ongoing crisis-hit property market, many analysts had anticipated a reduction in rates, especially after the Fed's cut of half a percentage point on Wednesday. However, both the five-year and one-year loan prime rates remained stable, at 3.85% and 3.35%, respectively. This unexpected standstill signals a cautious approach by the People’s Bank as it navigates the complex realities of the national economy.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.