Rate Cuts Will Give Short-Term Boost to Property Sales, Analysts Say
(Beijing) – Recent cuts to benchmark interest rates will bolster a real estate industry suffering from slumping sales and prices, analysts say, but the aid will last only a short time.
On November 22, the central bank cut its benchmark lending interest rates by 40 basis points to 5.6 percent for one-year loans. The benchmark rate for one-year term deposits was reduced by 25 basis points to 2.75 percent. Banks were also allowed to raise their deposit interest rates to 20 percent above the benchmark. The previous ceiling was 10 percent.
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