China cuts mortgage lending rate as property crisis deepens

Central bank steps up efforts to revive economy hurt by COVID-19 lockdowns, property market downturn

By Aysu Bicer

ANKARA (AA) – China slashed its mortgage lending rate on Monday as the world’s second-largest economy grapples with a spiraling property crisis.

For the second time this year, the People’s Bank of China lowered the five-year loan prime rate (LPR) by 15 basis points to 4.30%, and cut the one-year LPR by 5 basis points to a record low of 3.65%.

The bank also reduced its key interest rates last week, a surprise move aimed at reviving an economy battered by strict COVID-19 lockdowns and a property market downturn.

The medium-term lending rate was lowered by 10 basis points to 2.75%.

China’s industrial production and retail sales growth was lower than expected last month, indicating that Beijing’s stringent “zero-COVID” policy continues to weaken consumer demand.

Industrial production grew 3.8% year-on-year in July, weaker than market estimates of 4.6%, latest data showed.

Kaynak:

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