The central bank of China has announced that it will lower interest rate indicators such as mortgages.
As the economy is hit by the spread of the new coronavirus infection, it seems that the aim is to revitalize the real estate market and leverage the economy.
On the 20th, the central bank of China and the People's Bank of China left the one-year interest rate, which is a guideline for financial institutions to lend to companies, among the index called "LPR", which is regarded as the de facto policy interest rate. , Announced that the interest rate for 5 years, which is a guideline for long-term lending by financial institutions such as mortgages, will be reduced by 0.15% to 4.45%.
The five-year interest rate cut has been since January.
While the economy is being hit by the strict restrictions on going out in Shanghai and other areas due to the spread of the new corona infection, it seems that the aim is to revitalize the real estate market and infrastructure investment.
Authorities have tightened regulations to curb overheating in the real estate market, but the real estate industry is experiencing a cumulative drop in development investment from January to last month, down 2.7% from the same period last year. It is a shape that has become clearer again in the posture of leveraging.
On the other hand, behind the fact that interest rates have not been reduced for a year, it seems that there is a desire to avoid capital outflows and further increases in corporate import costs amid the rapid depreciation of the yuan, and it is pressing for difficult steering. Has been done.