(Beijing Comprehensive News) In the context of the low property market and the overall economy, the Chinese loan market quotation interest rate (LPR) has been reduced for the third time during the year, reflecting the government's urgency of controlling the deterioration of real estate crises.
Announcement released by the official website of the People's Bank of China on Monday (August 22) showed that the LPR was lowered in August, and the five -year LPR linked to the mortgage interest rate decreased by 15 basis points to 4.3 % compared with the previous month.; The one -year LPR lowered the five base points to 3.65 %.
Bloomberg quoted Xie Dongming, the research director of the Greater China of Overseas Chinese Bank, saying that asymmetric interest rate cuts reflect the urgency of controlling the deterioration of the worsening real estate crisis.
Xie Dongming pointed out that when residents are currently very weak, reducing housing loan interest rates will help help real estate sales stabilize. The one -year LPR decrease is less than expected, which may show that the central bank will rely more on structural monetary policy tools.
Earlier, the five -year interest rate unexpectedly lowered 15 basis points in May, creating the largest decline since the reform of the LPR quotation system in 2019.The People's Bank of China also lowered the interest rate of 10 basis points in the mid -term borrowing facilities (MLF) on the 15th to stimulate credit.Due to the obstruction of the developer's financing and the broken capital chain, and the decline in sales, the Chinese property market is falling into the cold winter and dragging down the Chinese economy.Officials have recently increased their efforts to support the real estate industry.
Xinhua News Agency reported on Friday (August 19) that relevant departments such as the Ministry of Housing and Construction, the Ministry of Finance, the Central Bank and other relevant departments recently issued measures to support the construction of rotten residential projects through the special borrowing method of policy banks to relieve the cause of funding due to funds.The impact of real estate projects that are difficult to stop or overdue on the social stability on social stability.
On the other hand, the duration exchange rate and medium price of the RMB to the US dollar averaged a new low since the end of September 2020.The exchange rate of the RMB against the US dollar once fell below 6.83, and this year the cumulative depreciation of more than 7 %; the central bank of the People's Bank of China was reported at 6.8198 to the US dollar, a cumulative decrease of 6.97 % this year.
Reuters quoted industry analysts that the decline is related to the restoration of the People's Republic of China and the continuous interest rate hike of the Federal Reserve, which reflects the differences between the two countries in monetary policy.
