Chinese Banks Cut Mortgage Reference Rate by Most on Record

00:00

00:00/00:00

Listen to this article 1x

The rate cut was the first since June and the largest reduction since a revamp of the rate was rolled out in 2019. Photo: Bloomberg

(Bloomberg) — China ramped up support for the troubled property sector with its biggest-ever cut to a key mortgage reference rate, raising expectations for more aggressive measures to support the economy in the months to come.

Chinese lenders slashed their five-year loan prime rate by 25 basis points to 3.95%, the People’s Bank of China (PBOC) announced Tuesday. It was the first cut since June and the largest reduction since a revamp of the rate was rolled out in 2019.