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Business|China Cuts Interest Rates and Mortgage Down Payments
https://www.nytimes.com/2024/09/24/business/china-cuts-mortgage-rates.html
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The country’s central bank also freed commercial banks to lend more money in a package of moves aimed at rekindling growth in a stagnant economy.
Sept. 24, 2024, 12:06 a.m. ET
China’s central bank announced a series of measures on Tuesday aimed at making it easier for households and companies to borrow money, in the boldest attempt by the Chinese authorities in recent months to revive economic growth, halt a housing market crash and stop a broad decline in prices.
The central bank, the People’s Bank of China, cut short-term interest rates and rates on existing mortgages, reduced minimum down payments for housing purchases, and freed banks to lend a larger proportion of their assets.
Pan Gongsheng, the governor of the central bank, said at a rare news conference that his agency was ready to free banks to lend even more money if needed.
Acting less than a week after the Federal Reserve cut rates by half a percentage point, the Chinese central bank cut a benchmark seven-day interest rate to 1.5 percent from 1.7 percent.
In addition, the People’s Bank of China told commercial banks they would be allowed to reduce, by half a percentage point, how much of their assets they hold in reserve. That move will free the banks to lend an additional $140 billion to companies and households.
Mr. Pan said that if needed in the coming months, the central bank was ready to make another reserve cut, potentially doubling the extra money available for lending.
