China's People's Bank of China Slashes Key Mortgage Rates to Stabilise Property Market
Key Rate Cuts Announced
On Monday, the People's Bank of China announced significant reductions in lending rates to enhance the property market. The benchmark five-year loan prime rate (LPR) was slashed from 3.85% to 3.6%, while the one-year lending rate fell from 3.35% to 3.1%.
Impact on Mortgage Loans
This change means that for Chinese households with mortgage loans averaging 1 million yuan (US$140,000), monthly payments will decrease by approximately 141.5 yuan (US$19.9). This reduction is poised to relieve financial pressure on homeowners.
Government's Commitment
- The decision aligns with Beijing's commitment to revive the ailing property market.
- Plans to double credit support to identified property projects to 4 trillion yuan are underway.
- The renovation of 1 million urban village units reflects ongoing efforts to boost market confidence.
Stay tuned for more updates on this evolving situation in China’s property sector.
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.