China cuts key interest rate in the latest move to boost its ailing property sector

BY ELAINE KURTENBACH

BANGKOK (AP) — China’s central bank announced Tuesday that it cut its 5-year loan prime rate while leaving its 1-year rate unchanged in the latest move to ease pressures on the ailing property market.

The 5-year rate was lowered by 0.25 basis points to 3.95% while the 1-year rate remains at 3.45%. It was the first time the 5-year rate was cut since May, and analysts said it was the largest cut on record for that rate.

Since markets reopened Monday after a weeklong Lunar New Year holiday break, state-owned banks have announced a flurry of plans for billions of dollars worth of loans to support developers struggling after a crackdown on excessive borrowing.

“On its own it will not revive new home sales. But coupled with efforts to provide increased credit support to developers, today’s cut should help to reduce pressure on the property sector somewhat,”