On Sunday, the People's Bank of China directed commercial banks to begin lowering interest rates on all existing housing loans. This extensive measure aims to assist in alleviating the mortgage burden on households affected by a sluggish economy.
According to a statement issued by the PBOC, all commercial banks must, in successive batches, reduce interest rates on existing mortgages by October 31 to a level not less than 30 basis points below the central bank's Loan Prime Rate, which serves as the benchmark rate for mortgages.
