Mortgage interest rate cut beyond expectations, China's LPR for 5 years or more is cut by 25 basis points. After the Spring Festival holiday, work will be carried out from the capital supply side to reduce loan interest and financing costs to coordinate with the stable start of the economy in 2024.
This is the second decline in LPR over 5 years since June 2023, and it is the largest decline inLPR ever. The asymmetric reduction of interest rates of different maturities indicates that the policy is focused on the targets it hopes to play a role in.