ANKARA – China slashed its mortgage lending rate on Monday as the world’s second-largest economy grapples with a spiraling property crisis.
For the second time this year, the People’s Bank of China lowered the five-year loan prime rate (LPR) by 15 basis points to 4.30 percent and cut the one-year LPR by five basis points to a record low of 3.65 percent.
The bank also reduced its key interest rates last week, a surprise move aimed at reviving an economy battered by strict Covid-19 lockdowns and a property market downturn.
The medium-term lending rate was lowered by 10 basis points to 2.75 percent.
China’s industrial production and retail sales growth were lower than expected last month, indicating that Beijing’s stringent “zero-Covid” policy continues to weaken consumer demand.
Industrial production grew 3.8 percent year-on-year in July, weaker than market estimates of 4.6 percent, the latest data showed. (Anadolu)
