China’s Largest-Ever Mortgage Rate Cut May Not Matter

China’s Largest-Ever Mortgage Rate Cut May Not Matter
Buildings under construction near the People's Bank of China office building in Chongqing, China, on Sept. 29, 2007. China Photos/Getty Images
Indrajit Basu
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News Analysis

On Feb. 20, the People’s Bank of China cut the country’s benchmark five-year loan prime rate for the first time since June 2023 as authorities moved to support the country’s faltering housing market and economy. Despite the biggest cut in history, experts have said that its effect on the housing market will be limited.