BEIJING, China – In an effort to stimulate economic growth, China unveiled a series of impactful policies aimed at bolstering various sectors on Tuesday. The People’s Bank of China announced significant cuts to the mortgage rate for existing housing and the reserve requirement ratio for commercial banks. Additionally, plans were set in motion to introduce new measures to support the stock market.
Governor Pan Gongsheng revealed that the reserve requirement ratio (RRR) would be slashed by half a percentage point, allowing commercial banks to hold less cash reserves. This move is expected to free up capital for lending and stimulate economic activity. Furthermore, existing mortgage rates will also be reduced by half a percentage point, providing relief to millions of households across the country.
In a joint press conference with other key officials, Governor Pan emphasized the positive impact these policy changes would have on the economy. The reduction in mortgage rates alone is projected to benefit a significant number of households, reducing overall interest expenses and potentially boosting consumption and investment.
Moreover, the People’s Bank of China expressed its commitment to supporting the acquisition of real estate companies’ lands. By exploring measures to facilitate loans for eligible companies looking to acquire land, the central bank aims to revitalize the real estate sector and alleviate financial pressure on enterprises within the industry.
Should the need arise, Governor Pan assured that the central bank stands ready to provide additional policy support to ensure the effectiveness of these new economic measures. With a focus on driving growth and promoting stability, China is taking proactive steps to mitigate the impact of global economic uncertainties on its domestic market.