China cuts key mortgage rate for first time since June to prop up economy

China on Tuesday cut a key reference rate for mortgage loans, as policymakers attempt to stabilise the crisis-hit property market as well as the national economy.

The five-year loan prime rate (LPR), which commercial banks use as a benchmark to adjust their mortgage rates, was lowered from 4.2 to 3.95 per cent, said the People’s Bank of China.

‘New productive forces’: empty rhetoric, or engine for China’s future growth?

The move is set to further lower household burdens and also boost home purchases.