China seeks to lower homebuyers' interest payments to boost spending

Rates on existing mortgages move lower while benchmarks hold steady

The People's Bank of China has kept benchmark interest rates unchanged for back-to-back meetings. © Reuters

IORI KAWATE, Nikkei staff writer

October 21, 2023 00:59 JST

BEIJING -- China's central bank left benchmark lending rates unchanged on Friday even as it seeks to guide rates on existing mortgages lower to put more money in consumers' pockets.

The People's Bank of China kept the one-year loan prime rate -- the benchmark for corporate loans -- unchanged for the second consecutive month at 3.45%. The over-five-year rate, a peg for mortgages, stayed at 4.2%, where it has been since July.