The People’s Bank of China (PBOC) announced on Sunday its directive for banks to lower mortgage rates on existing home loans before October 31. This measure is part of the central bank‘s strategy to bolster the struggling property sector amid a slowing economy, according to Bloomberg.
In a statement, the PBOC instructed commercial banks to adjust interest rates on existing mortgages to at least 30 basis points (bps) below the current Loan Prime Rate (LPR). It is anticipated that this initiative will lead to an average reduction of approximately 50 bps in existing mortgage rates.
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