CNN Business
—
China’s central bank is cutting its benchmark interest rate for mortgages yet again as it tries to stem a worsening property crisis.
The People’s Bank of China announced Monday that it would cut its five-year loan prime rate from 4.45% to 4.3%. It also slashed its one-year loan prime rate from 3.7% to 3.65%.
China’s loan prime rate is the rate at which commercial banks lend to their best customers. The five-year rate usually serves as a reference for mortgages.
Analysts said the reductions were widely anticipated, particularly since China had cut other interest rates last week as data showed the economy losing steam in July due to renewed Covid lockdowns and a deepening property downturn.