“Chinese authorities will cut the reserve requirement ratio and the key interest rate, and lower the benchmark interest rate in the market,” Gongsheng said at a news conference in Beijing.
He added that “the reserve requirement ratio will be reduced very soon by 0.5 percentage points in order to provide the financial market with long-term liquidity of about one trillion yuan” (128 billion euros).
The Central Bank Governor also announced that China It will also “lower interest rates on existing mortgages and unify down payment ratios for mortgages.”
He explained that this matter “will push commercial banks to reduce interest rates on existing real estate loans to a level close to interest rates on newly issued loans.”
More than a year and a half after the lifting of health restrictions imposed by the authorities to combat Covid pandemic Its repercussions were disastrous for the country’s economy, and the pace of economic recovery is still slower than expected.
The country is particularly suffering from a real estate crisis, high youth unemployment and slow household consumption.
