China makes record cut to mortgage reference rate
PBoC unveils 25bp reduction in five-year LPR in further bid to revive flagging property sector
The People’s Bank of China (PBoC) has announced a record cut to a key mortgage reference rate in a bid to support the country’s ailing property sector.
The central bank said in a statement today (February 20) that it was lowering the five-year loan prime rate (LPR) from 4.2% to 3.95%. The 25 basis point cut is the largest since the rate, which influences the pricing of mortgages, was introduced in 2019. It was last cut in June 2023 by 10bp.
The one-year LPR remains unchanged at 3.45%. This rate
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