China cuts borrowing rate more than expected to revive housing sector

China, in a monthly fixing, lowered the five-year loan prime rate (LPR) by 15 basis points to 4.45%, the biggest reduction since China revamped the mechanism in 2019

China cut its benchmark reference rate for mortgages by an unexpectedly wide margin on Friday, its second cut this year as Beijing seeks to revive the ailing housing sector to prop up the economy.
 
Senior officials have pledged further measures to fight a slowdown in the world's second-biggest economy, hit by Covid-19 outbreaks that prompted stringent measures and mobility restrictions, causing huge disruptions to economic activity.
 
Many market participants believe Friday's move was also a response to Premier Li Keqiang's call to decisively step up policy adjustments and strive to let the economy return to normal quickly.