China cut the reference rate of mortgages by more than expected, as authorities intensified efforts to stimulate credit demand and revive the real estate market.
The increase in net interest profit for commercial banks after recent cuts in deposit rates and a cut in banks' reserve requirement this month paved the way for lenders to lower borrowing costs to support the economy.
The key interest rate on the five-year loan was cut 25 basis points to 3.95 percent from 4.20 percent, while on one-year loans it was unchanged at 3.45 percent.
Source (Al-Arabiya.net Website, Edited)
