China to cut existing mortgage rates by the end of October [CSOP Global Market Morning Report]

🔸 China to cut existing mortgage rates by the end of October. China's central bank said on Sunday it would tell banks to lower mortgage rates for existing home loans before Oct. 31, as part of sweeping policies to support the country's beleaguered property market as the economy slows. Commercial banks should, in batches, reduce interest rates on existing mortgages to no less than 30 basis points (bps) below the Loan Prime Rate (LPR), the central bank's benchmark rate for mortgages, according to a statement released by the People's Bank of China (PBOC).

🔸 Major Chinese Cities Ease Homebuying Rules in Stimulus Push. The trading hub of Guangzhou became the first tier-1 city to remove all restrictions; Shanghai and Shenzhen also announced they were lowering minimum downpayment ratios for first and second homes to 15% and 20%, respectively. China in late September unveiled its biggest package yet to shore up its beleaguered property market, lowering borrowing costs on as much as US$5.3 trillion in mortgages and easing down-payment requirements for second-home purchases to a historical low.

🔸 Japan's incoming PM Ishiba calls for loose monetary policy. Japan's incoming prime minister, Shigeru Ishiba, said on Sunday the country's monetary policy must remain accommodative as a trend, signaling the need to keep borrowing costs low to underpin a fragile economic recovery. "It's something the Bank of Japan, which is mandated to achieve price stability, will decide while working closely with the government," Ishiba told public broadcaster NHK, when asked about further interest rate increases by the central bank. "From the government's standpoint, monetary policy must remain accommodative as a trend given current economic conditions," he said.

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