Friday, 7 October, 2022
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China cuts mortgage rate as property crisis deepens

China cuts mortgage rate as property crisis deepens

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China's central bank has cut its mortgage rate as officials work to support the crisis-hit property market.

The People's Bank of China (PBOC) lowered the five-year loan prime rate (LPR) by 1.5 percentage points, which matches its biggest cut on record.

The world's second largest economy faces a property crisis that has seen some building projects grind to a halt.

Lockdowns due to the country's strict zero-Covid policies are also affecting businesses and consumers.

On Monday, the PBOC reduced the five-year rate to 4.2%, which will bring down the cost of home mortgage repayments around the country.

It also lowered the one-year loan prime rate, which is usually used to determine corporate loans, from 3.7% to 3.65%.