MNI BRIEF:China Cuts Housing Provident Fund Loan Rates By 25bp

China will cut the loan rates of the individual housing provident fund by 0.25 percentage points, in a bid to support home purchase demand and stabilise the property market, Pan Gongsheng, governor of the People's Bank of China told reporters on Wednesday.

The interest rate of first-home loans that mature over five years will be lowered to 2.6% from 2.85%, with rates for other maturities adjusted simultaneously, said Pan, noting that the move will result in savings of over CNY20 billion in interest expenses for home buyers annually.

The housing provident fund is a long-term housing savings plan made up of compulsory monthly deposits by both employers and employees. It can only be used by employees for house-related expenses. (See MNI: China To Boost Developer Financing Support Further)