Jamie Chisholm of MarketWatch is reporting that China is cutting mortgage rates by a record amount to help the struggling property sector. Chisholm writes:
China made its biggest ever cut to mortgage rates on Tuesday, as the authorities try to support the struggling property sector, though the response from stock markets was muted.
The People’s Bank of China said that the country’s lenders would reduce their five-year loan prime rate (LPR) by 25 basis points to 3.95%, a bigger cut than expected and the first since June last year. The one-year LPR was maintained at 3.45%. […]
“To be sure, Beijing has cobbled together a rescue package aimed at purchasing stocks, signaling a proactive approach to addressing market turmoil. The breadth of measures is encouraging but likely to lead to another chorus of calls for much greater fiscal and monetary stimulus,” said Innes.
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