China Mortgage Rate Cuts Fall Short of ‘Game Changer’ Policy
- GDP growth rate may get a boost of 0.1-0.2 ppt, economists say
- Authorities have held off on massive stimulus to boost economy
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China’s anticipated cut to rates on existing mortgages marks one of the most concrete actions yet to boost the beleaguered economy, though it likely won’t be enough on its own to shore up growth.
That’s according to several economists after Bloomberg News reported Tuesday that the nation’s largest lenders are preparing to cut interest rates on existing mortgages and deposits. The state-directed measures mark the latest push by Beijing to spur consumer spending, juice the stock market and ease pressure on bank profit margins as the world’s second-largest economy loses steam.