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China cuts key mortgage rate for first time since June to prop up economy

China’s five-year loan prime rate, which commercial banks use as a benchmark to adjust their mortgage rates, was lowered from 4.2 to 3.95 per cent, the People’s Bank of China said on Tuesday.

China holds lending benchmarks, but two sessions a good time to cut rates, signal economic support

China’s one-year loan prime rate (LPR) was kept at 3.65 per cent, while the five-year LPR was also left unchanged, but despite recovering economic momentum, some analysts expect rates will ease after the ‘two sessions’ in March.

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