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China slashes mortgage lending rate by record

China on Friday cut a key interest rate for long-term loans for the second time this year, part of a push to overcome the impact of stringent COVID-19 lockdowns and a downturn in the property sector.

The five-year loan prime rate, a reference for mortgages, was lowered by 15 basis points to 4.45% from 4.6%, the People’s Bank of China said in a statement.

This was the largest cut since the rate was revamped in 2019.

The one-year loan prime rate, the benchmark lending rate, was kept unchanged at 3.7%.

Source: Anadolu Agency