MADRID, 20 May. (EUROPA PRESS) –
The People’s Bank of China (PCB) has announced a record 15 basis point cut in the benchmark interest rate for bank loans over five years, to 4.45% from 4.60% , with the aim of reactivating the Asian giant’s real estate market.
This is the second drop so far this year in the reference interest rate for mortgage loans, after the People’s Bank of China cut the rate to 4.60% from 4.65% last month of January after almost two years without variations.
Likewise, the Chinese central bank has decided to keep the interest rate applied to bank loans maturing in one year unchanged at 3.7%.
“Today’s cut in the five-year prime lending rate should help fuel a revival in home sales, which have gone from bad to worse recently,” said Julian Evans-Pritchard, senior China analyst at Capital Economics. .
However, the expert considers that the lack of a reduction in the prime rate to one year “suggests that the PBC is trying to continue pointing towards relaxation and that a large-scale stimulus as in 2020 should not be expected.”
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