Announcements from the People's Bank of China

China Lowers Lending Rates to 3.1% and 3.6% to Stabilize Property Market

Oct 20, 2024, 06:02 PM

On Monday, China's central bank cut its benchmark lending rates by 25 basis points, lowering the one-year loan prime rate to 3.1% from 3.35% and the five-year rate to 3.6% from 3.85%, as anticipated. This move is part of intensified monetary support by the People's Bank of China to bolster the economy amid ongoing property market challenges and sluggish consumer spending. Since late September, the central bank has signaled intentions to cut interest rates, release liquidity, and provide funding to securities firms. Experts note that the rate reductions will lower the cost of home purchases in the property sector, reducing monthly payment pressures and aiming to stabilize the real estate market.