China to Cut Rates on $5 Trillion Mortgages as Soon as September
- Some banks are making final preparations for rate adjustments
- Move may spur household consumption, hurt bank profitability
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China is poised to cut interest rates on more than $5 trillion of outstanding mortgages as early as this month, according to people familiar with the matter, as it accelerates a move to reduce the borrowing costs for millions of families to spur consumption.
Some banks are making final preparations to get ready for the upcoming adjustments on mortgage rates, said the people, asking not to be identified discussing a private matter. Some homeowners may enjoy up to 50 basis points of immediate rate reduction, one of the people said.